Need help on the wrong ones On May 1, 2016, Ramden Company issues 13% bonds with

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Need help on the wrong ones

On May 1, 2016, Ramden Company issues 13% bonds with a face value of $2 million. The bond contract calls for retirement of the bonds in periodic installments of $200,000, starting on May 1, 2017, and continuing on each May 1 thereafter until all bonds are retired. Required: How would the preceding information appear in Ramden's balance sheets on December 31, 2016 and 2017? RAM DEN COMPANY Partial Balance Sheet December 31, 2016 and 2017 2016 2017 Current Liabilities: Bonds payable 200,000 200,000 Long-Term Liabilities: x Bonds payable x

Explanation / Answer

long term liabilities

bonds payable = 2,000,000 - 200,000 = 1,800,000 for 2016

2017               = 1,800,000 - 200,000   =1,600,000

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