New Wave Co. sold 10,000 annual subscriptions of Game Life for $75 during December 2012. These new subscribers will receive monthly issues, beginning in January 2013. In addition, the business had taxable income of $550,000 during the first calendar quarter of 2013. The federal tax rate is 40%. A quarterly tax payment will be made on April 7, 2013.
Prepare the Current Liabilities section of the balance sheet for New Wave Co. on March 31, 2013.