New Wave Co. sold 13,500 annual subscriptions of Game Life for $48 during December 2014. These new

Question:

New Wave Co. sold 13,500 annual subscriptions of Game Life for $48 during December 2014. These new subscribers will receive monthly issues, beginning in January 2015. In addition, the business had taxable income of $408,000 during the first calendar quarter of 2015. The federal tax rate is 35%. A quarterly tax payment will be made on April 7, 2015. Prepare the Current Liabilities section of the balance sheet for New Wave Co. on March 31, 2015.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...