Cauce Corporation is preparing its year-end balance sheet. The company records show the following selected amounts at the end of the year. Total assets Total noncurrent assets Liabilities: Notes payable (8%, due in 5 years) Accounts payable Income taxes payable. Liability for withholding taxes Rent revenue collected in advance Bonds payable (due in 15 years) Wages payable Property taxes payable Note payable (10%, due in 6 months) Interest payable Common stock Required: $ 620,000 318,000 17,000 50,000 11,000 4,000 10,000 92,000 10,000 6,000 12,000 500 250,000 1-a. What is the amount of current liabilities? 1-b. Compute working capital. 2. Would your computation be different if the company reported $310,000 worth of contingent liabilities in the notes to its financial statements?

Cauce Corporation is preparing its year-end balance sheet. The company records show the following selected amounts at the end of the year. Total assets Total noncurrent assets Liabilities: Notes payable (8%, due in 5 years) Accounts payable Income taxes payable. Liability for withholding taxes Rent revenue collected in advance Bonds payable (due in 15 years) Wages payable Property taxes payable Note payable (10%, due in 6 months) Interest payable Common stock Required: $ 620,000 318,000 17,000 50,000 11,000 4,000 10,000 92,000 10,000 6,000 12,000 500 250,000 1-a. What is the amount of current liabilities? 1-b. Compute working capital. 2. Would your computation be different if the company reported $310,000 worth of contingent liabilities in the notes to its financial statements?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 2EA: Consider the following accounts and determine if the account is a current liability, a noncurrent...

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