Reference no: EM13567400

The adjusted trial balance for Holly Corporation at the end of 2014 contained the following accounts:

Bonds payable, 10% $700,000

Interest payable 20,000

Discount on bonds payable 40,000

Lease liability 50,000

Mortgage notes payable, 9%, due 2017 90,000

Accounts payable 120,000

Instructions

(a) Prepare the long-term liabilities section of the balance sheet.

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