Question

Presented here are liability items for Teal Mountain Inc. at December 31, 2020. Accounts payable $321,850 FICA taxes payable $15,990 Notes payable (due May 1, 2020) 41,000 Interest payable 82,000 Bonds payable (due 2023) 1,845,000 Notes payable (due 2021) 164,000 Unearned rent revenue 492,000 Income taxes payable 7,175 Discount on bonds payable 84,050 Sales taxes payable 3,485 Prepare the liabilities section of Teal Mountain's balance sheet.

Answer 1

Answer:

Total Liabilities = $2,888,450

Explanation:

Teal Mountain Inc.

Balance Sheet

As of December 31, 2020

Current Liabilities

Accounts Payable                                                                $ 321,850

FICA taxes payable                                                                $15,990

Notes Payable                                                                        $41,000

Interest Payable                                                                     $82,000

Unearned Rent Revenue                                                     $492,000

Income Taxes Payable                                                               $7,175

Sales Taxes Payable                                                                 $3,485

Total Current Liabilities                                                          $963,500

Long Term Liabilities:

Bonds Payable                                             $1,845,000

Less: Discount on Bonds Payable                 ($84,050)       $1,760,950

Notes Payable                                                                          $164,000

Total Liabilities                                                                    $2,888,450