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New Wave Co. sold 14,500 annual subscriptions of Game Life for $54 during December 2016. These new subscribers will receive monthly issues, beginning in January
New Wave Co. sold 14,500 annual subscriptions of Game Life for $54 during December 2016. These new subscribers will receive monthly issues, beginning in January 2017. In addition, the business had taxable income of $492,000 during the first calendar quarter of 2017. The federal tax rate is 40%. A quarterly tax payment will be made on April 7, 2017.
Prepare the Current Liabilities section of the balance sheet for New Wave Co. on March 31, 2017.
| New Wave Co. | |
| Current Liabilities Section of Balance Sheet | |
| March 31, 2017 | |
| Current liabilities: | |
| Federal income taxes payable | $ |
| Advances on magazine subscriptions | |
| Total current liabilities | $ |
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