Question

Presented here are liability items for O'Brian Inc. at December 31, 2022. Accounts payable $157,000 FICA taxes payable $7,800 Notes payable (due May 1, 2023) 20,000 Interest payable 40,000 Bonds payable (due 2026) 900,000 Notes payable (due 2024) 80,000 Unearned rent revenue 240,000 Income taxes payable 3,500 Discount on bonds payable 41,000 Sales taxes payable 1,700Prepare the liabilities section of Desmond's balance sheet.

Answer 1

Answer:

Current Liabilities

Accounts payable                $  157,000

FICA taxes payable             $     7, 800

Notes payable (short-term) $   20,000

Interest payable                   $   40,000

Income tax payable              $     3,500

Sales tax payable                 $      1, 700

Unearned revenue               $ 240,000

Total current                         $  470,000

Non Current liaiblities:

Note payable                       $     80,000

Bonds payable (net)            $   859,000

Total non-current                 $   939,000

Total Liabilities:                    $ 1,409,000

Explanation:

Current liabilities are those which are due within a year

While non-current are above a year

We must organize the liabiltiies based on how fast will they be enforceable