Question

In: Accounting

At December 31, 2018, Hickshaw Corp had the following accountbalances? What is the total amount...

At December 31, 2018, Hickshaw Corp had the following account balances? What is the total amount of long-term liabilities that will appear on Hickshaw's December 31, 2018, balance sheet?

Accounts Payable$ 32,700
Bonds Payable$ 125,000
Discount on Notes Payable$ 1,000
Dividends Payable$ 3,550
Mortgage Payable (payable equally over next 3 years)$ 72,000
Notes Payable - 6 months$ 5,000
Premium on Bonds Payable$ 25,000
Salaries Payable$ 15,280

Place your final response first; then show your work and label your numbers.

Solutions

Expert Solution

Bonds payable 125,000
Premium on bonds payable 25,000
Carrying value of bonds 150,000
Mortgage payable 48,000
Total $198,000

Total long term liabilities = $198,000

Mortgage payment of $72,000 is payable equally over next 3 years.

Hence, current portion of mortgage payable (payable next year) = 72,000/3

= $24,000

Long term portion of mortgage payable = 72,000-24,000

= $48,000


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