Assume bonds payable are amortized using the straight-line amortization method unless stated otherwise. Reporting liabilities At December 31, MediStat Precision Instruments owes $52,000 on Accounts Payable, Salaries Payable of $12,000, and Income Tax Payable of $10,000. MediStat also has $300,000 of Bonds Payable that were issued at face value that require payment of a $35,000 installment next year and the remainder in later years. The bonds payable require an annual interest payment of $4,000, and MediStat still owes this interest for the current year. Report MediStat’s liabilities on its classified balance sheet on December 31, 2018.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Assume bonds payable are amortized using the straight-line amortization method unless stated otherwise.

Reporting liabilities

At December 31, MediStat Precision Instruments owes $52,000 on Accounts Payable, Salaries Payable of $12,000, and Income Tax Payable of $10,000. MediStat also has $300,000 of Bonds Payable that were issued at face value that require payment of a $35,000 installment next year and the remainder in later years. The bonds payable require an annual interest payment of $4,000, and MediStat still owes this interest for the current year. Report MediStat’s liabilities on its classified balance sheet on December 31, 2018.

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