Question

Presented here are long-term liability items for Skysong, Inc. on December 31, 2017.

Bonds payable (due 2021) $920,000
Notes payable (due 2019) 84,000
Discount on bonds payable 23,000
Prepare the long-term liabilities section of the balance sheet for Skysong, Inc.

Answer 1

Skysong, Inc.

Balance Sheet (Partial)

As on December 31, 2017.

Liabilities

Long Term Liabilities

Bonds payable (due 2021) $920,000

Notes payable (due 2019) $84,000

Discount on bonds payable ($23,000)

Total Long Term Liabilities $981,000

Step-by-step explanation:

Long term liabilities are all those liabilities that will be paid after one year's time. As Bond Payable is due in 2021 and needs to be paid after 4 years it is classified as long term liabilities. Note Payable is also due in 2019 and needs to be paid after 2 years it is also classified as long term liabilities.