Review your responses to Exercise 11-19. On March 31, 2013, Filmore’s accountant states that the company owes $15,000 in employee salaries and $17,000 in Accounts payable. Further, the company has Unearned rent revenue of $12,000 representing rent through September 30, 2013. Finally, Filmore has a mortgage on its office building of $140,000, of which $10,000 is due in the next year.
Requirement
1. Report Filmore Homebuilders’ liabilities on its classified balance sheet as of March 31, 2013. List the liabilities in descending order (largest to smallest), and calculate subtotals for each classification.