Fridley Manufacturing\'s accounting records reveal the following account balance

Question

Fridley Manufacturing's accounting records reveal the following account balances after adjusting entries are made on December 31, 2018:

* Long-term liability

Required:

Prepare the current liabilities and long-term debt portions of Fridley's statement of financial position at December 31, 2018. 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 2025) 800,000 Lease liability* 41,500 Bonds payable (8.7%, due in 2021) 50,000 Deferred tax liability* 133,400 Discount on bonds payable (9.4%, due in 2025) 12,600 Income tax payable 26,900 Interest payable 38,700 Installment note payable (8% equal installments due 2019 to 2022) 120,000 Notes payable (7.8%, due in 2023) 400,000 Premium on notes payable (7.8%, due in 2023) 6,100 Zero coupon note payable, $50,000 face amount, due in 2024 (net of discount) 31,900

Explanation / Answer

Fridley Manufacturing Liabilities Section of the Statement of Financial Position December 31, 2018 Liabilities Current liabilities: Accounts payable 62500 Interest payable 38700 Income tax payable 26900 Current portion of Installment note 30000 Total current liabilities 158100 Long-term liabilities: Bonds payable: Bonds payable (8.7%, due in 2021) 50000 Bonds payable (9.4%, due in 2025) 800000 Less: Discount on bonds payable -12600 787400 Notes payable: Notes payable (7.8%, due in 2023) 400000 Add: Premium on notes payable 6100 406100 Installment note payable (8%) 90000 Note payable (0%, due in 2024) 50000 Less: Discount on note payable -18100 Other long-term liabilities: 31900 Lease liability 41500 Deferred tax liability 133400 Total liabilities 1698400

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