New Wave Co. sold 17,500 annual subscriptions of Game Life for $51 during Decemb
ID: 2432726 • Letter: N
Question
New Wave Co. sold 17,500 annual subscriptions of Game Life for $51 during December 2016. These new subscribers will receive monthly issues, beginning in January 2017. In addition, the business had taxable income of $564,000 during the first calendar quarter of 2017. The federal tax rate is 38%. 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 $ Current Liabilities New Wave Co. sold 17,500 annual subscriptions of Game $51 calendar quarter of 2017. The federal tax rate is 38%. A quarterly tax payment will be made on April 7, 2017 Life for $51 during December 2016. These new subscenbers will receive monthly ssues, beginning in January 2017 in addition, the business had taxable Income of $564,000 during the first during December 2016. These new subscribers will receive monthly issues, beginning in January 2017. In addition, the business had taxable income of $564,000 during the first 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 Lilal March 31,20 Current liabilities Federal income taxes payable Advances on magazine subscriptions Total current liabilitiesExplanation / Answer
Current liabilities: Federal income taxes payable 214320 =564000*38% Advances on magazine subscription 669375 =(17500*51)/12*9 Toatl Current liabilities 883695