Question

Reporting and Interpreting Bond Disclosures
The adjusted trial balance for the Hass Corporation at the end of 2015 contains the following accounts:

$30,000	Bond Interest Payable
550,000	9% Bonds Payable due 2017
600,000	10% Bonds Payable due 2016
21,000	Discount on 9% Bonds Payable
3,000	Premium on 8% Bonds Payable
180,000	Zero-Coupon Bonds Payable due 2018
110,000	8% Bonds Payable due 2020

Prepare the long-term liabilities section of the balance sheet. Indicate the proper balance sheet classification for accounts listed above that do not belong in the long-term liabilities section.

Complete the following liabilities section of the balance sheet.

Current liabilities:
Bond interest payable	Answer 30,000
10 bonds payable due 2016	Answer 600,000
Total current liabilities	Answer 630,000
Long-term debt:
9 bonds payable due 2017	Answer
Zero coupon bonds payable due 2018	Answer 180,000
8% bonds payable due 2020, net	Answer
Total long-term debt	Answer

Answer 1

CURRENT LIABILITIES
Bond Interest Payable		30000.00
10% bond payable due 2016		600000.00
Total Current Liability		630000.00
LONG TERM DEBT
9% Bond payable due 2017	550000.00
Discount on 9% Bond Payable	21000	571000.00
Zero Coupon bonds payable due 2018		180000.00
8% bonds payable due 2020,	110000.00
Premium on 8% Bond Payable	3000	113000.00
		864000.00

amount which are payable within 12 months are classified as current liability

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