Question

At December 31, MediMark Precision Instruments owes $ 56,000 on Accounts Payable, Salaries Payable of $ 18,000, and Income Tax Payable of $ 6,000. MediMark also has $ 290,000 of Bonds Payable that were issued at face value that require payment of a $ 40,000 installment next year and the remainder in later years. The bonds payable require an annual interest payment of $ 3,000, and MediMark still owes this interest for the current year. Report MediMark's liabilities on its classified balance sheet on December 31, 2018.

Answer 1

Answer:

Total Liabilities  $ 373,000

Explanation:

MediMark Precision Instruments

Classified Balance Sheet

December 31, 2018

Liabilities:

Current Liabilities

Accounts Payable $ 56,000

Salaries Payable  $ 18,000

Income Tax Payable  $ 6,000

Bonds Payable  $ 40,000

Interest Payable  $ 3,000

Total Current Liabilities  $ 123,000

Long term Liabilities

Long term Bonds Payable   $ 250,000

Total Liabilities  $ 373,000

Total Bonds Payable $ 290,000

Current Bonds Payable ( within a year)  $ 40,000

Long term Bond Payable   $ 250,000

Current liabilities are those which are payable within the current accounting period or a within a year.

Answer 2

Answer:

$373,000

Explanation:

MediMark Precision Instruments Balance Sheet (Partial)

31-Dec-18

Liabilities

Current liabilities:

Accounts payable $56,000

Salaries payable $18,000

Income tax payable $6,000

Current bonds payable $40,000

Interest payable $3,000

Total current liabilities $123,000

Long term debts:

Bonds payable (long term) $250,000

Total long term debts $250,000

Total Liabilities $373,000

($250,000 +$123,000)

Long term bonds payable

= Bonds payable - Current bonds payable

$290,000 - $40,000

= $250,000