Question

Presented here are liability items for Windsor, Inc. at December 31, 2017. Accounts payable $329,700 FICA taxes payable $16,380 Notes payable (due May 1, 2018) 42,000 Interest payable 84,000 Bonds payable (due 2021) 1,890,000 Notes payable (due 2019) 168,000 Unearned rent revenue 504,000 Income taxes payable 7,350 Discount on bonds payable 86,100 Sales taxes payable 3,570

Prepare the liabilities section of Windsor, Inc's balance sheet.

Answer 1

Answer and Explanation:

The preparation of liabilities section of Windsor, Inc's balance sheet is shown below:-

Balance Sheet

Windsor, Inc. at December 31, 2017

Liabilities

Current liabilities

Notes payable 1 May $16,380

Accounts payable $329,700

Unearned rent revenue $504,000

Interest payable $84,000

FICA taxes payable $16,380

Income taxes payable $7,350

Sales tax payable $3,570

Total current liabilities $961,380

Long Term Liabilities

Bonds payable $1,890,000

Note payable $168,000

Discount on bonds payable ($86,100)

Total Long Term Liabilities $1,971,900

Total Liabilities $2,933,280