Current Liabilities for O’Brian’s Balance Sheet
The purpose of this assignment is to help you understand the balance sheet presentation for The Liabilities Section of O’Brian’s Balance the liabilities of a company. sheet Grading Guide
Financial Accounting. Tools for Business Decision Making Prepare the liabilities section of O’Brian’s balance sheet using the following information:
- Accounts payable $157,000
- Notes payable (due May 1, 2018) $20,000
- Bonds payable (due 2021) $900,000
- Unearned rent revenue $240,000
- Discount on bonds payable $41,000
- FICA taxes payable $7,800 Interest payable (due 2019) $80,000
- income taxes payable $3,500
- Sales taxes payable $1,700
The Liabilities Section of O’Brian’s balance sheet must be 525 Words. Show work on the Week 3 Excer spreadsheet.
The following principles should be followed when preparing the balance sheet for any company.
- Order items based on their liquidity, with items that can be converted quickly to cash being listed first.
- Current liabilities are obligations that will be paid within 1 year or less.
Partial Balance Sheet for O’Brian Inc
|Sales Taxes Payable||1,700|
|FICA Taxes Payable||7,800|
|Income Taxes Payable||3,500|
|Unearned Rent Revenue||240,000|
|Total Current Liabilities||410,000|
|Long Term Liabilities|
|Discount on bonds payable||-41,000|
|Total Long Term Liabilities||959,000|