Homework SourseThe adjusted trial balance for Vaughn Manufacturing at the e
The adjusted trial balance for Vaughn Manufacturing at the end of the current year, 2018, contained the following accounts.
The total long-term liabilities reported on the balance sheet are
| 5-year Bonds Payable 8% | $2900000 | ||
| Interest Payable | 48000 | ||
| Premium on Bonds Payable | 99000 | ||
| Notes Payable (3 months.) | 42000 | ||
| Notes Payable (5 yr.) | 163000 | ||
| Mortgage Payable ($15000 due currently) | 199000 | ||
| Salaries and wages Payable | 19000 | ||
| Income Taxes Payable (due 3/15 of 2019) | 25000 |
Solution
Liabilities payable after one year from the reporting date is a long term liability
correct option is \"B
| 5-year Bonds Payable 8% | Long term since payable after one year | 2900000 |
| Interest Payable | current liability as it is generally payable within a year | - |
| Premium on Bonds Payable | since bond payable is long term liability so premium on such bond will be long term in nature | 99,000 |
| Notes Payable(3 months) | short term | - |
| Notes Payable (5years) | long term | 163000 |
| Mortgage Payable ($15000 due currently) | Long term except the amount due currently 199000-15000 | 184000 |
| Salaries and wages Payable | short term | - |
| Income Taxes Payable (due 3/15 of 2019) | payable within a year | - |
| Total long term liabilities | 3,346,000 |
