3. From the following, prepare the long-term liabilities section of a balance sheet:
a. Sinking Fund $275,000
b. Premium on 13% bonds 7,000
c. Discount on 16% bonds 13,000
d. 13% Bonds Payable 600,000
e. 16% Bonds Payable 180,000
Balance Sheet (Partial) | ||
Liabilities | ||
Long-Term Liabilities | ||
13% Bonds Payable | 600,000.00 | |
Premium on 13% Bonds | 7,000.00 | 607,000.00 |
16% Bonds Payable | 180,000.00 | |
Discount on 16% Bonds | (13,000.00) | 167,000.00 |
Total Long-Term Liabilities | 774,000.00 | |
Sinking Fund - is reported is immediately after the Current Assets Section of the Balance Sheet. The sinking fund is the fund used for the retiring of bonds. |
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