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The adjusted trial balance for Karr Farm Corporation at the end of the current year contained the...

Question:

The adjusted trial balance for Karr Farm Corporation at the end of the current year contained the following accounts.

Interest Payable $9,500
Lease Liability 87,000
Bonds Payable, due 2022 177,000
Premium on Bonds Payable 34,000

Prepare the long-term liabilities section of the balance sheet.

Long-Term Liabilities:

Long-term liabilities are amounts owed with due dates that extend beyond one year. Common long-term liabilities include bonds and notes payable. These liabilities are separated from current liabilities since these amounts will not be paid within the following year and, as a result, will not demand the use of current assets.

Answer and Explanation:

Long-Term Liabilities
Bonds Payable, due 2022 $177,000
Premium on Bonds Payable 34,000 $211,000
Lease Liability 87,000
Total Long-Term Liabilities $298,000

Learn more about this topic:

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Long-Term Debt: Definition, Cost & Formula

from Financial Accounting: Help and Review

Chapter 8 / Lesson 7
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