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Problem Reporting Long-Term Debt
Fridley Manufacturing’s accounting records reveal the following account balances after
Required:
Prepare the current liabilities and long-term debt portions of Fridley’s balance sheet at December 31, 2020. Provide a separate line item for each issue (do not combine separate bonds or notes payable), but some items may need to be split into more than one item.
Accounts payable |
$ 62,500 |
Bonds payable (9.4%, due in 2027) |
800,000 |
Lease liability* |
41,500 |
Bonds payable (8.7%, due in 2023) |
50,000 |
|
133.400 |
Discount on bonds payable |
|
(94%, due in 2027) |
12,600 |
Income taxes payable |
26,900 |
* Long term liability
Interest payable |
$ 38,700 |
Installment note payable (8%, equal |
|
installments due 2021 to 2024) |
120,000 |
Notes payable (7.8%, due in 2025) |
400,000 |
Premium on notes payable |
|
(7.8%, due in 2025) |
6, [00 |
Note payable, 4% $50,000 face amount. |
|
due in 2026 (net of discount) |
31,900 |
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Chapter 9 Solutions
Cornerstones of Financial Accounting
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