Question

Presented here are liability items for Larkspur, Inc. at December 31, 2017. Accounts payable $345,400 FICA taxes payable $17,160 Notes payable (due May 1, 2018) 44,000 Interest payable 88,000 Bonds payable (due 2021) 1,980,000 Notes payable (due 2019) 176,000 Unearned rent revenue 528,000 Income taxes payable 7,700 Discount on bonds payable 90,200 Sales taxes payable 3,740. Prepare the liabilities section of Larkspur's balance sheet.

Answer 1

Answer:

Total liabilities = $3,099,800

Explanation:

                          Larkspur, Inc.

                Balance Sheet (Partial)

              As at December 31, 2017

       Liabilities  

Current Liabilities

Accounts payable                         $345,400

FICA taxes payable                             17,160

Notes payable (due May 1, 2018)     44,000

Interest payable                                88,000

Unearned rent revenue                 528,000

Income taxes payable                         7,700

Sales taxes payable                           3,740

Total current liabilities                                   $1,034,000      

Long-term liabilities

Bonds payable (due 2021)          1,980,000

Less: Discount on bonds payable (90,200)

Net bonds payable                    $1,889,800            

Notes payable (due 2019)              176,000

Total Long-term liabilities                              $2,065,800

Total liabilities                                                 $3,099,800