Presented here are long-term liability items for Skysong, Inc. on December 31, 2017.
|Bonds payable (due 2021)||$920,000|
|Notes payable (due 2019)||84,000|
|Discount on bonds payable||23,000|
Prepare the long-term liabilities section of the balance sheet for Skysong, Inc.
Liabilities are the obligations that are measurable and definitely payable on a future date. Liabilities are classified into two types: current liabilities and long-term liabilities. The classification is based on the repayment date or maturity date of the liability.
Answer and Explanation:
Long-term liabilities section of the balance sheet:
|Long term liabilities & stockholders' equity||Amount ($)||Amount ($)||Amount ($)|
|Less: Discount on bonds payable||-$23,000.00||$897,000.00|
|Long term notes payable||$84,000.00|
|Total long-term liabilities||$981,000.00|
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from Accounting 101: Financial AccountingChapter 10 / Lesson 6