Presented here are long-term liability items for Skysong, Inc. at December 31, 2017. Bonds...

Question:

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.

Long-Term Liabilities:

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 ($)
Long-term liabilities:
Bonds payable $920,000.00
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

Learn more about this topic:

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Accounting for Long-Term Liabilities

from Accounting 101: Financial Accounting

Chapter 10 / Lesson 6
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