At December 31, 2014, Redmond Company has outstanding three long-term debt issues. The first is a...

Question:

At December 31, 2014, Redmond Company has outstanding three long-term debt issues. The first is a $2,039,700 note payable which matures June 30, 2017. The second is a $6,021,100 bond issue which matures September 30, 2018. The third is a $12,557,000 sinking fund debenture with annual sinking fund payments of $2,511,400 in each of the years 2016 through 2020. Prepare the required note disclosure for the long-term debt at December 31, 2014. Long-term Debt 2015$ 2016$ 2017$ 2018$ 2019$

Long-Term Debts:

Long-term debts refer to the debts that are outstanding and which are held by the company and possess a maturity period of 12 months and more. The long-term debts are denoted on the balance sheet of the company as a non-current liability.

Answer and Explanation:

Year Long-term Debt Explanation
2015 0
2016 25,11,400 From the annual payment of sinking fund
2017 45,51,100 25,11,400 + note payable maturity $20,39,700
2018 78,71,400 25,11,400 + bond maturity $53,60,000
2019 25,11,400 From the annual payment of sinking fund


Learn more about this topic:

Loading...
Long-Term Debt: Definition, Cost & Formula

from Financial Accounting: Help and Review

Chapter 8 / Lesson 7
34K

Related to this Question

Explore our homework questions and answers library