7. Comfort realty has the following account balances at December31, 2018 Notes payable ($80,000 due after 12/31/19) $200,000Unearned revenue 75,000 Other long-term debt ($30,000 due in 2019)150,000 Salaries payable 22,000 Other accrued expense 15,000Accounts payable 100,000 In addition, Comfort realty is involved ina lawsuit. Legal counsel feels it is probably Comfort realty willpay damages of $38,000 in 2019.
a. Prepare the current liability section of comfort realty’sDecember 31, 2018, balance sheet
b. Comfort realty’s current assets are $504,000. Compute comfortrealty’s work capital and current ratio.
