Prepare the liability section of the balance sheet

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Reference no: EM131294478

Little Suzie operates a feed store Examine the following items and prepare the liability section of the balance sheet. Be sure and distinguish between current and long-term liabilities. The beginning of year accounts payable was $150,000. Purchases on account were $900,000 and payments were $975,000. As of the end of the year the company had used $12,000 of utilities but the monthly billing for this had not been received. Customers had prepaid for monthly feed deliveries in the amount of $90,000 however only $76,000 of this had been delivered by the end of the year. The company has a note in the amount of $2,000,000 due in three years. The yearly interest rate is 6% with interest payable monthly at the beginning of the following month. As of December 31 all interest had been paid with the exception of the December interest. At year end it is estimated that employees are owed $11,000 for work performed for which the payroll checks will not be issued until after the end of the year. Little Suzie issued 20 year bonds last year on December 31st. All interest has been paid on the bonds this year. The bonds were issued at face value for $500,000.

Reference no: EM131294478

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