Question

The adjusted trial balance for Marigold Corp. at the end of the current year, 2021, contained the following accounts. 5-year Bonds Payable 8% $3000000 Interest Payable 48000 Premium on Bonds Payable 98000 Notes Payable (3 months.) 42000 Notes Payable (5 yr.) 167000 Mortgage Payable ($15000 due currently) 199000 Salaries and wages Payable 19000 Income Taxes Payable (due 3/15 of 2022) 26000 The total long-term liabilities reported on the balance sheet are
a. $3351000.
b. $3464000.
c. $3449000.
d. $3366000.

Answer 1

Answer:

c. $3449000.

Explanation:

The relevant long-term liabilities items are as follows:

5-year Bonds Payable 8% = $3,000,000

Premium on Bonds Payable = $98,000

Notes Payable (5 yr.) = $167,000

Mortgage Payable ($15000 due currently) = $199,000 - $15,000 = $184,000

Therefore, we have:

Total long-term liabilities = $3,000,000 + $98,000 + $167,000 + $184,000 = $3,449,000.