Bright Eyes Auto Supplies Balance Sheet December 31 2013 650

Bright Eyes Auto Supplies Balance Sheet December 31, 2013 65,000 25,000 Cash Prepaid Insurance Accounts Receivable Inventory Land Held for Investment Land Building 20,000 40,000 50,000 70,000 90,000 125,000 Accounts Payable Salaries and Wages Payable Mortgage Payable Total Liabilities 0 Common Sock Retaine d Earnings $100,000 $120,000 Less Accumulated 0,000 Depreciation (30,000) 70,00 Total Liabilities and Trademark Total Assets $535,000 Stockholders\' Equity $535,000 The following information is for Bright Eyes Auto Supplies: The total dollar amount of liabilities to be classified as current liabilities is $25,000. $65,000 $90,000. $165,000.

Solution

Solution: Answer is 3rd option \"$90,000\" Working Notes: Current liabilities are those liabilities which is payable within in next 12 months, and Accounts payable & salary & wages payable are the liabilities which have to be settled with in next 12 months so they are included in current liabilities. But Mortgage payable are usually for more than 12 months , so it is not included in current liabilities, if its is indicated it is payable within 12 months then only it will be also included in current liabilities. Current liabilities = Accounts payable + Salaries and wages payable =$65,000 +$25,000 =$90,000 Please feel free to ask if anything about above solution in comment section of the question.