At December 31, 2021, Jackson Corporation’s adjusted trial balance shows the following balances: 

Jackson Corporation provides multi-year warranties with its products. Half of the Accrued Warranty Liability relates to warranty liabilities that will be paid in 2022, while the other half relates to warranty liabilities to be paid in 2023. The Unearned Service Revenue pertains to a service contract that will be performed during 2022; $200,000 of the 7% bonds payable due December 31, 2026, is due on December 31, 2022. 

Requirement

1. Prepare the current liability section of Jackson Corporation’s balance sheet at December 31, 2021.

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Accrued Warranty Payable 3% Notes Payable, due April 30, 2022 Unearned Service Revenue Accounts Payable Employee Income Tax Payable Accounts Receivable Interest Payable 7% Bonds Payable, due December 31, 2026 Accumulated Depreciation Treasury Stock Salaries Payable 4% Notes Payable, due December 31, 2022 Sales Tax Payable FICA Tax Payable $ 48,000 180,000 64,000 187,000 23,000 312,000 23,000 1,000,000 57,000 77,000 93,000 150,000 41,000 8,000