Question

04. The adjusted trial balance for Vennables Co. at December 31, 2018 includes the following: 5-year Bonds Payable 8% (due 2023) $3,000,000 Interest Payable 60,000 Premium on Bonds Payable 200,000 Notes Payable (3 months.) 50,000 Notes Payable (5 yr.) 265,000 Mortgage Payable ($15,000 due currently) 300,000 Salaries and wages Payable 55,000 Income Taxes Payable (due 3/15 of 2019) 35,000 The total long-term liabilities reported on the Balance Sheet at December 31, 2018 are:

Answer 1

Answer:

The total long-term liabilities are $3,750,000.

Explanation:

Long-term liabilities are Company`s obligations that are due for settlement within a period longer than 12 months.

So, identify all the items that fall in this category and find the total.

5-year Bonds Payable 8% (due 2023)                                         $3,000,000

Premium on Bonds Payable                                                           $ 200,000

Notes Payable (5 yr.)                                                                        $265,000

Mortgage Payable (Long term portion) 300,000 - $15,000          $285,000

Total long-term liabilities                                                               $3,750,000