Examine the following items and prepare the current liabilities section of the Balance sheet for Annapolis Corporation as of December 31, 2015
The beginning of year accounts payable was $82,000. Purchases on trade accounts during the year were $452,000, and payments on account were $415,000.
The company incurs substantial costs in its manufacturing plant. As of December 31, 2015, it is estimated that $38,000 of electricity has been used. The monthly billing for December has not yet been received.
Annapolis Corporation has accepted deposits from customers in advance for product that will not ship until 2016 in the amount of $174,500.
Annapolis Corporation has collected sales tax totaling $6,800 from customers during the month of December, 2015. This tax must be remitted to the state by January 10, 2016.
Annapolis Corporation has $2,000,000 outstanding on a bank loan. The interest rate is 7.5% per annum and the interest is paid monthly on the first day of each month for the prior month.
The loan listed above has principle repayment obligations equally spread over eight years beginning in 2016.
Annapolis Corporation
Partial Balance Sheet as of December 31, 2015
Current Liabilities
Total Current Liabilities