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(solution) Rock On Magazine Co. sold 11,400 annual subscriptions of Rock


Rock On Magazine Co. sold 11,400 annual subscriptions of Rock On for $35 during December 2008. These new subscribers will receive monthly issues, beginning in January 2009. In addition, the business had taxable income of $140,000 during the first calendar quarter of 2009. The federal tax rate is 35%. A quarterly tax payment will be made on April 7, 2009. Prepare the Current Liabilities section of the balance sheet for Rock On Magazine Co. on March 31, 2009.

 


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