The Liabilities Section of O’Brian’s Balance Sheet
Purpose of Assignment
The purpose of this assignment is to help you understand the balance sheet presentation for the liabilities of a company.
Resources: 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 $40,000
- Notes payable (due 2019) $80,000
- Income taxes payable $3,500
- Sales taxes payable $1,700
Show work on the Week 3 Excel® spreadsheet.
Note: This assignment requires that you only submit an Excel® Workbook file. There are no written or APA guideline requirements.
A couple of notes on this assignment:
1 – This paper does not require a written analysis, you only need to submit the Excel sheet.
2 – Remember that the notes payable must be recorded in the short and long term liabilities section.
3 – Lastly, the discount on the bonds payable should be shown as a direct deduction from the bonds payable.