shot time usually within queation of otheribilities include: accounts payable, unearned revenues, and accrued liabilities such as taxes payable, salaries payable, and interest payable.) Accounts payable: the amount owed to others for goods, supplies, or services purchased on account . Vote pay able . Unearned rent: Liabilities emerge from the receipt of rent in advance . Taxes payable : The amount of taxes owed to governmental units . Interest payable: The am- 6 . from Bank Chiz 11 Acc 201 EXERCISES Ex. 1 Howell Company has the following selected accounts after posting adjusting entries: $ 45,000 Accounts Payable 80,000 kelly Notes Payable, 3-month Accumulated Depreciation-Equipment 14,000 Ron 90 000 + 120000 - ( 180000 + 120000) x 30 ] Payroll and Benefits Payable 27,000 Notes Payable, 5-year, 8% 30,000 Total Estimated Warranty Liability 34,000 Ron + Linda Payroll Tax Expense 6,000 Interest Payable 3,000 Mortgage Payable 200,000 Sales Tax Payable 16,000 Instructions (a) Prepare the current liability section of Howell Company's balance sheet, assuming $25,000 of the mortgage is payable next year. (List liabilities in magnitude order, with largest first.) (b) Comment on Howell 's liquidity, assuming total current assets are $450,000. Solution 10 (12 min.) (a) HOWELL COMPANY Current Liabilities Notes payable, 3-month $ 80,000 Accounts payable 45,000