Answer and Explanation:
The preparation of liabilities section of Windsor, Inc's balance sheet is shown below:-
Balance Sheet
Windsor, Inc. at December 31, 2017
Liabilities
Current liabilities
Notes payable 1 May $16,380
Accounts payable $329,700
Unearned rent revenue $504,000
Interest payable $84,000
FICA taxes payable $16,380
Income taxes payable $7,350
Sales tax payable $3,570
Total current liabilities $961,380
Long Term Liabilities
Bonds payable $1,890,000
Note payable $168,000
Discount on bonds payable ($86,100)
Total Long Term Liabilities $1,971,900
Total Liabilities $2,933,280
