Question

Refer to the following list of liability balances at December 31, 2019.

Accounts Payable $13,000
Employee Health Insurance
Payable 1,150
Employee
Income Tax Payable 1,200
Estimated Warranty Payable (Due 2020) 1,500
Long-Term Notes Payable (Due 2022) 41,000
FICA-OASDI Taxes Payable 1,160
Sales Tax Payable 770
Mortgage Payable (Due 2023) 8,000
Bonds Payable (Due 2024) 59,000
Current Portion of Long - Term Notes Payable 5,500
What is the total amount of long-term liabilities?
A. $100,000
B. $108,000
C. $41,000
D. $49,000

Answer 1

B. $108,000

Explanation:

The computation of the total amount of long-term liabilities is shown below:-

Total amount of long-term liabilities = Long term notes payable (Due 2022) + Mortgage payable (Due 2023) + Bonds payable (Due 2024) + Long term liabilities

= $41,000 + $8,000 + $59,000

= $108,000

Therefore for computing the total amount of long-term liabilities we simply applied the above formula and we have not considered as they are not relevant and not covered into long-term liabilities as they all are current liabilities