The adjusted trial balance for Sandhi!! Farm Corporation at the end of the current year contained the following accounts.
|Bonds Payable, due 2025||175,900|
|Premium on Bonds Payable||34,000|
Prepare the long-term liabilities section of the balance sheet.
I Long-Term Debt:
Long term liabilities are presented in the balance sheet and represent the liabilities that are not due before a period of twelve months from the date of the balance sheet. The long-term liabilities include the issuance of debt, borrowing of long-term loans, deferred liabilities, etc. The other type of debt that forms part of the total liabilities other than the long-term debt is the current liabilities.
Answer and Explanation:
The long-term liabilities section of Sandhi!! Farm Corporation is made below:
|Long term liabilities:||Amount|
|Bonds Payable, due 2025||$175,900|
|Add Premium on Bonds Payable||$34,000|
|Total long-term liabiltiies||$295,800|
Interest payable is a current liability as it is already accrued and will be paid within the next twelve months.
Become a member and unlock all Study Answers
Try it risk-free for 30 daysTry it risk-free
Ask a question
Our experts can answer your tough homework and study questions.Ask a question Ask a question
Learn more about this topic:
from Financial Accounting: Help and ReviewChapter 8 / Lesson 7