Question

Problem 9-91A (Algorithmic) Reporting Long-Term Debt Fridley Manufacturing's accounting records reveal the following account balances after adjusting entries are made on December 31, 2020: Accounts payable $59,400 800,000 41,500 Bonds payable (9.4%, due in 2027) Capital lease liability Bonds payable (8.7%, due in 2023) Deferred tax liability Discount on bonds payable (9.4%, due in 2027) Income taxes payable 50,000 133,400 12,600 26,900 38,700 Interest payable 120,000 400,000 Installment note payable (8% equal installments due 2021 to 2024) Notes payable (7.8%, due in 2025) Premium on notes payable (7.8%, due in 2025) Zero coupon note payable, $50,000 face amount, due in 2026 6,100 31,900 Long-term liability Required: Prepare the current liabilities and long-term debt portions of Fridley's balance sheet at December 31, 2020. Provide Check My Work 5 more Check My Work oming < Previous Next > Email Instructor Save and Exit Submit Assignment for Grading Jul 10 pl Н.

Answer 1

Prepare a liability section of balance sheet as follows:

Fridley Manufacturing
Liabilities Section of the Statement of Financial Position
December 31, 2018
Liabilities
Current liabilities:
Accounts payable	59400
Interest payable	38700
Income tax payable	26900
Current portion of installment note	30000
Total current liabilities		155000
Long-term liabilities:
Bonds payable:
Bonds payable (8.7%, due in 2021)	50000
Bonds payable (9.4%, due in 2025)	800000
Less: Discount on bonds payable	-12600	837400
Notes payable:
Notes payable (7.8%, due in 2023)	400000
Add: Premium on notes payable	6100
Installment note payable (8%)	90000
Note payable (4%, due in 2024)	50000
Less: Discount on note payable	-18100	528000
Other long-term liabilities:
Lease liability	41500
Deferred tax liability	133400	174900
Total liabilities		1695300