Question

At the financial statement date of December 31, 2020, the liabilities outstanding of Sheridan Corporation included the following:

1.		Cash dividends on common stock, $44,800, payable on January 15, 2021.
2.		Note payable to Wabaso State Bank, $450,000, due January 20, 2021.
3.		Serial bonds, $1,396,000, of which $349,000 mature during 2021.
4.		Note payable to Orlando National Bank, $345,000, due January 27, 2021.

The following transactions occurred early in 2021:

January 15:		The cash dividends on common stock were paid.
January 20:		The note payable to Wabaso State Bank was paid.
January 25:		The corporation entered into a financing agreement with Wabaso State Bank, enabling it to borrow up to $500,000 at any time through the end of 2023. Amounts borrowed under the agreement would bear interest at 1% above the bank's prime rate and would mature 3 years from the date of the loan. The corporation immediately borrowed $400,000 to replace the cash used in paying its January 20 note to the bank.
January 26:		40,000 shares of common stock were issued for $385,400. $345,000 of the proceeds was used to liquidate the note payable to Orlando National Bank.
February 1:		The financial statements for 2020 were issued.

Prepare a partial balance sheet for Sheridan Corporation, showing the manner in which the above liabilities should be presented at December 31, 2020. The liabilities should be properly classified between current and long-term, and appropriate note disclosure should be included.

Pollard Corporation Partial Balance Sheet at December 31, 2020
Total Long-Term DebtTotal LiabilitiesCurrent LiabilitiesTotal Current LiabilitiesLong-Term Debt :
Note Payable—Orlando National Bank    Serial Bonds not maturing currently    Dividends Payable    Currently maturing portion of Serial Bonds    Notes Payable—Wabaso State Bank		$
Notes Payable—Wabaso State Bank    Dividends Payable    Note Payable—Orlando National Bank    Currently maturing portion of Serial Bonds    Serial Bonds not maturing currently
Currently maturing portion of Serial Bonds    Serial Bonds not maturing currently    Dividends Payable    Notes Payable—Wabaso State Bank    Note Payable—Orlando National Bank
Total Long-Term Debt    Total Current Liabilities    Total Liabilities    Current Liabilities    Long-Term Debt				$
Current LiabilitiesTotal Current LiabilitiesTotal LiabilitiesLong-Term DebtTotal Long-Term Debt :
Serial Bonds not maturing currently    Currently maturing portion of Serial Bonds    Dividends Payable    Notes Payable—Wabaso State Bank    Note Payable—Orlando National Bank
Serial Bonds not maturing currently    Currently maturing portion of Serial Bonds    Note Payable—Orlando National Bank    Dividends Payable    Notes Payable—Wabaso State Bank
Long-Term Debt    Total Current Liabilities    Current Liabilities    Total Long-Term Debt    Total Liabilities
Total LiabilitiesLong-Term DebtTotal Long-Term DebtCurrent LiabilitiesTotal Current Liabilities				$

Answer 1