b)

Current Liabilities Bon Nebo Co. sold 25,000 annual subscriptions of Magazine 20xx for $85 duing December 20Y8. These new subscribers will receive monthly issues, beginning in January 20Y9. In addition, the business had taxable income of $840,000 during the first calendar quarter of 20Y9. The federal tax rate is 40%. A quarterly tax payment will be made on April 12, 20Y9 Prepare the Current Liabilities section of the balance sheet for Bon Nebo Co. on March 31, 20Y9. Bon Nebo Co. Current Liabilities Section of Balance Sheet March 31, 20Y9 Current liabilities: Federal income taxes payable 336,000 Advances on magazine subscriptions 63.75 X Total current liabilities 336,063.75X Feedback Check My work Pay attention to the dates given in the exercise