Ski World Magazine Inc. sold 5,200 annual subscriptions of Ski World for $50 each during December 2006.

Question:

Ski World Magazine Inc. sold 5,200 annual subscriptions of Ski World for $50 each during December 2006. These new subscribers will receive monthly issues, beginning in January 2007. In addition, the business had taxable income of $225,000 during the first calendar quarter of 2007. The federal tax rate is 35%. A quarterly tax payment will be made on April 7, 2007.
Prepare the Current Liabilities section of the for Ski World Magazine Inc. on March 31, 2007. Ignore deferred taxes.

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...