Indigo Corporation's Current Liabilities as of December 31, 2021
What are the current liabilities of Indigo Corporation as of December 31, 2021?
1. What is the total amount of notes payable?
2. How much unearned service revenue does Indigo have?
3. What is the balance of mortgage payable?
4. How much is the salaries payable?
5. What is the amount of accounts payable?
6. How does Indigo Corporation record provisions related to litigations?
Current Liabilities of Indigo Corporation
1. The total amount of notes payable is $116,000.
2. Indigo Corporation has $81,000 of unearned service revenue.
3. The balance of mortgage payable is $290,000.
4. The salaries payable is $37,000.
5. The amount of accounts payable is $73,000.
6. Indigo Corporation records provisions related to litigations in the account Litigation Liability.
Explanation of Indigo Corporation's Current Liabilities
Indigo Corporation has several current liabilities as of December 31, 2021. The first is notes payable, with an outstanding balance of $116,000. This represents a debt obligation that is due after December 31, 2022. The next liability is unearned service revenue, which amounts to $81,000. This indicates that Indigo has received advance payments for services that have not yet been provided.
Indigo also has a mortgage payable with a balance of $290,000, which is due in 2022. This represents a long-term loan secured by a mortgage on the company's assets. Additionally, there are salaries payable of $37,000, which represents the amount owed to employees for work performed but not yet paid.
Accounts payable amount to $73,000, which represents the company's outstanding obligations to suppliers and creditors. Finally, Indigo records provisions related to litigations in the account Litigation Liability. Based on legal counsel's assessment, the company expects to pay damages of $29,000 in 2022 related to an ongoing lawsuit.
Overall, the current liabilities section of Indigo's balance sheet reflects its short-term obligations and provisions as of December 31, 2021.