Liabilities on the Balance Sheet: O’Brian Inc. BE10-13

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.

Solution Guide

The following principles should be followed when preparing the balance sheet for any company.

  1. Order items based on their liquidity, with items that can be converted quickly to cash being listed first.
  2. Current liabilities are obligations that will be paid within 1 year or less.

Partial Balance Sheet for O’Brian Inc

Current Liabilities  
Accounts Payable157,000
Sales Taxes Payable1,700
FICA Taxes Payable7,800
Income Taxes Payable3,500
Unearned Rent Revenue240,000
Total Current Liabilities410,000
Long Term Liabilities
Notes Payable20,000
Bonds Payale900,000
Discount on bonds payable-41,000
Interest Payable80,000
Total Long Term Liabilities959,000
Total Liabilities1,369,000
  • Kristine Kataoka

    How would you incorporate a second notes payable? – Notes payable 20,000 (due 5/1/18) and Notes payable $80,000 (due 2019)

 

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