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.
Liabilities section of O'Brian Inc.'s balance sheet 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: $1,700
Total liabilities: $1,490,000
To prepare the liabilities section of O'Brian Inc.'s balance sheet, you need to list the liability items presented at December 31, 2022. Here is the liabilities section:
Liabilities:
- 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: $1,700
Please note that the amounts provided are based on the information given.
To prepare the liabilities section of Desmond's balance sheet, we need to classify the liabilities into their respective categories. Let's start by organizing the liability items provided:
1. Current Liabilities:
- Accounts payable: $157,000
- FICA taxes payable: $7,800
- Interest payable: $40,000
- Notes payable (due May 1, 2023): $20,000
- Unearned rent revenue: $240,000
- Income taxes payable: $3,500
- Sales taxes payable: $1,700
2. Long-term Liabilities:
- Bonds payable (due 2026): $900,000
- Notes payable (due 2024): $80,000
- Discount on bonds payable: $41,000
Now, let's organize these liabilities into the liabilities section of Desmond's balance sheet:
Liabilities:
Current Liabilities:
- Accounts payable: $157,000
- FICA taxes payable: $7,800
- Interest payable: $40,000
- Notes payable (due May 1, 2023): $20,000
- Unearned rent revenue: $240,000
- Income taxes payable: $3,500
- Sales taxes payable: $1,700
Long-term Liabilities:
- Bonds payable (due 2026): $900,000
- Notes payable (due 2024): $80,000
- Discount on bonds payable: $41,000
When organizing the liabilities section of a balance sheet, it is important to list the current liabilities first, followed by long-term liabilities. The amounts associated with each liability are listed next to their respective items. This arrangement helps provide a clear picture of the company's financial obligations.