Question

The adjusted trial balance for Swifty Corporation at the end of the current year, 2021, contained the following accounts. 5-year Bonds Payable 9% $2900000 Interest Payable 49000 Premium on Bonds Payable 101000 Notes Payable (3 months.) 39000 Notes Payable (5 yr.) 165000 Mortgage Payable ($15000 due currently) 202000 Salaries and wages Payable 16000 Income Taxes Payable (due 3/15 of 2022) 24000 The total long-term liabilities reported on the balance sheet areA) $2,865,000. B) $2,850,000. C) $2,965,000. D) $2,950,000.

Answer 1

Swifty Corporation, Long-Term Liabilities:

5-year Bonds Payable 9% - $2,900,000

Premium on Bonds Payable - $101,000

Notes Payable (5 yr.) $165,000

Mortgage Payable $187,000

Total $3,353,000

Step-by-step explanation:

The long-term liabilities are the financial obligations or debt claims on resources which are not due for repayment within the current operating cycle or year.

The 5-year bonds payable is part of the long-term liabilities, including the premium on bonds payable as they will last for more than one year.

Notes Payable with 5 year life is a long-term liability including the mortgage payable that is not due currently.