Current liabilities

Bon Nebo Co$.$ sold $40,000$ annual subscriptions of Bjorn for $$60$ during December $20$Y$5.$ These new subscribers will receive monthly issues, beginning in January $20$Y$6.$ In addition, the business had taxable income of $$920,000$ during the first calendar quarter of $20Y6.$ The federal tax rate is $30\%.$ A quarterly tax payment will be made on April $12,20Y6.$

Prepare the "Current liabilities" section of the balance sheet for Bon Nebo Co$.$ on March $31,20Y6.$

Bon Nebo Co$.$

Current Liabilities Section of Balance Sheet

March $31,20Y6$

Line Item Description

Amount

Current liabilities:

Advances on magazine subscriptions $

Federal income taxes payable

Total current liabilities

$$