EXERCISE 10-1
Current liabilities
Rock On Magazine Co. sold 11,400 annual subscriptions of Rock On for $35 during December 2008. These new subscribers will receive monthly issues, beginning in January 2009. In addition, the business had taxable income of $140,000 during the first calendar quarter of 2009. The federal tax rate is 35%. A quarterly tax payment will be made on April 7, 2009.
Prepare the current liabilities section of the balance sheet for Rock On Magazine Inc. on March 31, 2009.
HOW DO YOU DO THIS I NEED TO KNOW
Current liabilities:
Federal income taxes payable
Advances on magazine subscriptions
Total current liabilities
2007-12-04
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