Question

At December 31, 2017, Pharoah Corporation has the following account balances: Bonds payable, due January 1, 2026 $2,300,000 Discount on bonds payable 95,000 Interest payable 88,000Show how the above accounts should be presented on the December 31, 2017, balance sheet, including the proper classifications.

Answer 1

Answer and Explanation:

Partial balance sheet of Vaughn Corporation is as follows:

Particular Amount

Current liabilities

Interest payable $88,000

Long-term Liabilities

Bonds Payable $2,300,000

Less: Discount on bonds payable ($95,000)

$2,293,000