"Accounts payable $89,500
Accounts receivable 171,000
Bank indebtedness 60,600
CPP payable 6,700
EI payable 4,200
HST payable 16,300
Income tax payable 31,500
Interest payable 9,600
Merchandise inventory 264,000
Mortgage payable 144,000
Notes payable 96,000
Prepaid expenses 12,000
Property taxes payable 10,500
Unearned revenue 27,900
Vacation pay payable 13,000
Warranty liability 21,500
Workers’ compensation payable 1,200
Additional information:
1. On September 30, 2021, the unused operating line of credit is $72,000.
2. 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, $10,000 is due each year.
4. Of the note payable, $1,000 is due at the end of each month.
Part 1
Your Answer
Correct Answer
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Your answer is partially correct.
Prepare the current liabilities section of the balance sheet.
LIGHTHOUSE DISTRIBUTORS
(Partial) Balance Sheet
For the Year Ended September 30, 2021September 30, 2021For the Month Ended September 30, 2021
Long-Term LiabilitiesProperty, Plant and EquipmentTotal Long-Term InvestmentsCurrent AssetsTotal LiabilitiesTotal Stockholders' EquityTotal Intangible AssetsTotal Liabilities and Stockholders' EquityTotal Current AssetsCurrent LiabilitiesTotal Long-Term LiabilitiesTotal AssetsTotal Current LiabilitiesIntangible AssetsLong-Term InvestmentsTotal Property, Plant and EquipmentStockholders' Equity
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Total Current LiabilitiesTotal Long-Term LiabilitiesTotal Stockholders' EquityStockholders' EquityLong-Term InvestmentsProperty, Plant and EquipmentTotal AssetsTotal Liabilities and Stockholders' EquityCurrent LiabilitiesLong-Term LiabilitiesTotal Current AssetsTotal Property, Plant and EquipmentCurrent AssetsTotal Long-Term InvestmentsTotal Intangible AssetsTotal LiabilitiesIntangible Assets
Part 2
Calculate LightHouse’s current ratio and acid-test ratio. (Round answers to 2 decimal places, e.g. 15.75.)
Current ratio :1
Acid-test ratio:1