Current Liabilities

Bon Nebo Co$.$ sold $25,000$ annual subscriptions of Magazine $20xx$ for $$85$ during December $20$ Y $8.$ These new subscribers will receive monthly issues, beginning in January $20$Y$9.$ In addition, the business had taxable income of $$840,000$ during the first calendar quarter of $20$ Y $9.$ The federal tax rate is $40\%.$ A quarterly tax payment will be made on April $12,20$ Y $9).$

Prepare the Current Liabilities section of the balance sheet for Bon Nebo Co$.$ on March $31,20$ Y$9.$

Bon Nebo Co$.$

Current Liabilities Section of Balance Sheet

March $31,20$Y$9$

Federal income taxes payable

Advances on magazine subscriptions

Total current liabilities