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

Question:

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

Interest Payable $9,500
Lease Liability 85,900
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:


Answer:

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
Lease Liability $85,900
Total long-term liabiltiies $295,800

Note:

Interest payable is a current liability as it is already accrued and will be paid within the next twelve months.


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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