Question

Presented here are long-term liability items for Metlock, Inc. at December 31, 2017.

Bonds payable (due 2021) $720,000
Notes payable (due 2019) 85,000
Discount on bonds payable 26,000
Prepare the long-term liabilities section of the balance sheet for Metlock, Inc.

Answer 1

Step-by-step explanation:

The preparation of the long-term liabilities section of the balance sheet for Metlock, Inc is shown below:

Metlock, Inc

Long-term liabilities section

December 31, 2017

Long-term liabilities

Bond payable $720,000

Less: Discount on bonds payable -$26,000 $694,000

Notes payable $85,000

Total Long-term liabilities $779,000