Question
Gala, Inc. incurred a net loss of $20,000 for 2020. The balance sheet at December 31, 2020, For Gala, Inc., includes the following items in
Gala, Inc. incurred a net loss of $20,000 for 2020. The balance sheet at December 31, 2020, For Gala, Inc., includes the following items in random order:
| Account Titles | Amounts |
| Land | $21,000 |
| Building | 180,000 |
| Notes payable (due in three years) | 80,000 |
| Retained earnings | 25,000 |
| Accounts payable | 75,000 |
| Cash | 43,000 |
| Marketable securities | 20,000 |
| Capital stock | 300,000 |
| Salaries payable | 12,000 |
| Prepaid insurance | 9,000 |
| Inventory | 55,000 |
| Accounts receivable | 33,000 |
Calculate the total amount of the current liabilities.
a- $167,000
b- $75,000
c-$87,000
d- $12,000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Intermediate Accounting
Authors: Donald E. Kieso, Jerry J. Weygandt, And Terry D. Warfield
13th Edition
9780470374948, 470423684, 470374942, 978-0470423684
