Question

FastTrackFastTrack

Magazine, Inc., includes the following selected accounts in its general ledger at December 31,

20182018 :

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Requirement

1. Prepare the liabilities section of

FastTrackFastTrack

Magazine's balance sheet at

magazine, Inc., includes the following selected accounts in its general ledger at December 31,

20182018 :

December31,2018 ,to show how the company would report these items. Report a total for current liabilities. (Report any accounts that do not have a corresponding contra account before any accounts with a corresponding contra account.)

Mortgage notes payable (due in 15 years). . .	$125,000	Accounts payable. . . . . . . . . . . . .	$35,000
Lease payable, long-term. . . . . . . . . . . . . . . . .	28,000	Discount on bonds payable. . . . . .	6,000
Bonds payable (due in 10 years). . . . . . . . . . .	325,000
Interest payable (due next year). . . . . . . . . . . .	1,800

Answer 1

Liabilities section of FastTrack Magazine's balance sheet is as prepared below:

Liabilities :
Current Liabilities
Accounts Payable	35,000
Interest Payable	1,800
Total Current Liabilities		36,800
Long term liabilities:
Mortgage Notes Payable		125,000
Lease payable, long term		28,000
Bonds payable	325,000
Less: Discount on bonds payable	-6,000	319,000
Total long term liabilities		472,000
Total Liabilities		508,800