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28 Sep 2019
Fridley Manufacturing's accounting records reveal the following account balances after adjusting entries are made on December 31, 2018:
Accounts payable $ 62,500 Bonds payable (9.4%, due in 2025) 800,000 Lease liability* 41,500 Bonds payable (8.7%, due in 2021) 50,000 Deferred tax liability* 133,400 Discount on bonds payable (9.4%, due in 2025) 12,600 Income tax payable 26,900 Interest payable 38,700 Installment note payable (8% equal installments due 2019 to 2022) 120,000 Notes payable (7.8%, due in 2023) 400,000 Premium on notes payable (7.8%, due in 2023) 6,100 Zero coupon note payable, $50,000 face amount, due in 2024 (net of discount) 31,900
* Long-term liability
Required:
Prepare the current liabilities and long-term debt portions of Fridley's statement of financial position at December 31, 2018. Provide a separate line item for each issue (do not combine separate bonds or notes payable), but some items may need to be split into more than one item.
Fridley Manufacturing Liabilities Section of the Statement of Financial Position December 31, 2018 Liabilities Current liabilities: Accounts payable $ Interest payable Income tax payable Current portion of installment note Total current liabilities $ Long-term liabilities: Bonds payable: Bonds payable (8.7%, due in 2021) Bonds payable (9.4%, due in 2025) $ Less: Discount on bonds payable Notes payable: Notes payable (7.8%, due in 2023) $ Add: Premium on notes payable Installment note payable (8%) Note payable (4%, due in 2024) $ Less: Discount on note payable Other long-term liabilities: Lease liability Deferred tax liability Total liabilities $
Fridley Manufacturing's accounting records reveal the following account balances after adjusting entries are made on December 31, 2018:
Accounts payable | $ 62,500 | |
Bonds payable (9.4%, due in 2025) | 800,000 | |
Lease liability* | 41,500 | |
Bonds payable (8.7%, due in 2021) | 50,000 | |
Deferred tax liability* | 133,400 | |
Discount on bonds payable (9.4%, due in 2025) | 12,600 | |
Income tax payable | 26,900 | |
Interest payable | 38,700 | |
Installment note payable (8% equal installments due 2019 to 2022) | 120,000 | |
Notes payable (7.8%, due in 2023) | 400,000 | |
Premium on notes payable (7.8%, due in 2023) | 6,100 | |
Zero coupon note payable, $50,000 face amount, due in 2024 (net of discount) | 31,900 |
* Long-term liability
Required:
Prepare the current liabilities and long-term debt portions of Fridley's statement of financial position at December 31, 2018. Provide a separate line item for each issue (do not combine separate bonds or notes payable), but some items may need to be split into more than one item.
Fridley Manufacturing | ||
Liabilities Section of the Statement of Financial Position | ||
December 31, 2018 | ||
Liabilities | ||
Current liabilities: | ||
Accounts payable | $ | |
Interest payable | ||
Income tax payable | ||
Current portion of installment note | ||
Total current liabilities | $ | |
Long-term liabilities: | ||
Bonds payable: | ||
Bonds payable (8.7%, due in 2021) | ||
Bonds payable (9.4%, due in 2025) | $ | |
Less: Discount on bonds payable | ||
Notes payable: | ||
Notes payable (7.8%, due in 2023) | $ | |
Add: Premium on notes payable | ||
Installment note payable (8%) | ||
Note payable (4%, due in 2024) | $ | |
Less: Discount on note payable | ||
Other long-term liabilities: | ||
Lease liability | ||
Deferred tax liability | ||
Total liabilities | $ |
Casey DurganLv2
29 Sep 2019