The adjusted trial balance for Cross Corp. at the end of the current year, 2008, contained the...

Question:

The adjusted trial balance for Cross Corp. at the end of the current year, 2008, contained the following accounts.

5-year Bonds Payable 8% $927.000

Bond Interest Payable 53,000

Premium on Bonds Payable 110,000

Notes Payable (3mo.) 11,000

Notes Payable (5 yr.) 177,000

Mortgage Payable ($15,000 due currently) 166,000

Salaries Payable 14,000

Taxes Payable (due 3/15 of 2009) 26,000

The total long-term liabilities reported on the balance sheet are

A. $1,323,000.

B. $1,380,000.

C. $1 .281 .000.

D. $1 .365,000.

Long term liability:

Long term liability is liability or obligation which is not due in one year like bonds, long term loans, etc. Sometimes a portion of long term liability is due in the current year that portion will come under current liability.

Answer and Explanation:

Long term liability:

Bonds payable $927,000
Notes payable $177,000
Mortage payable($166,000-12000 $151000
The premium on bonds payable $110,000
Total $1,365,000

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Current & Long-Term Liabilities: Definition & Characteristics

from Accounting 101: Financial Accounting

Chapter 10 / Lesson 1
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