The following selected account balances are from Creative Carpentry's adjusted trial balance at March 31, 2017:

Additional information
1. On March 31, 2017, the unused operating line of credit is $25,000.
2. Redemption rewards, warranties, and gift cards are expected to be redeemed within one year. Unearned revenues relate to gift cards sold but not yet redeemed.
3. Of the mortgage, $50,000 is due each year.
4. Of the note payable, $5,000 is due at the end of each month.
Instructions
(a) Prepare the current liabilities section of the balance sheet.
(b) Calculate Creative's current ratio and acid-test ratio.
(c) Explain why the company did not report any cash as part of its current assets.
Taking It Further
Explain to Peter, the owner of Creative Carpentry, why unearned gift card revenue is a current liability and how the liability will be settled.

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Accounts receivable Accounts payable Bank overdraft CPP payable El payable HST payable Income tax payable Interest payable Accumulated depreciation Mortgage payable Merchandise inventory Notes payable Prepaid expenses Unearned revenue Vacation pay payable Warranty liability $184,000 60,000 55,200 2,300 1,750 12,250 25,000 8,000 115,000 200,000 120,600 30,000 500 9,385 1,200 12,500