At December 31, MediMark Precision Instruments owes $ 56,000 on Accounts Payable, Salaries Payable of $ 18,000, and Income Tax Payable of $ 6,000. MediMark also has $ 290,000 of Bonds Payable that were issued at face value that require payment of a $ 40,000 installment next year and the remainder in later years. The bonds payable require an annual interest payment of $ 3,000, and MediMark still owes this interest for the current year. Report MediMark's liabilities on its classified balance sheet on December 31, 2018.

Question

Business

Frederick Stone

28 November, 14:16

At December 31, MediMark Precision Instruments owes $ 56,000 on Accounts Payable, Salaries Payable of $ 18,000, and Income Tax Payable of $ 6,000. MediMark also has $ 290,000 of Bonds Payable that were issued at face value that require payment of a $ 40,000 installment next year and the remainder in later years. The bonds payable require an annual interest payment of $ 3,000, and MediMark still owes this interest for the current year. Report MediMark's liabilities on its classified balance sheet on December 31, 2018.

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Tyrese Sherman · Answer 1

Total Liabilities $ 373,000

Explanation:

MediMark Precision Instruments

Classified Balance Sheet

December 31, 2018

Liabilities:

Current Liabilities

Accounts Payable $ 56,000

Salaries Payable $ 18,000

Income Tax Payable $ 6,000

Bonds Payable $ 40,000

Interest Payable $ 3,000

Total Current Liabilities $ 123,000

Long term Liabilities

Long term Bonds Payable $ 250,000

Total Liabilities $ 373,000

Total Bonds Payable $ 290,000

Current Bonds Payable (within a year) $ 40,000

Long term Bond Payable $ 250,000

Current liabilities are those which are payable within the current accounting period or a within a year.