Chapter 9, Problem 91PSA

Problem Reporting Long-Term Debt

Fridley Manufacturing’s accounting records reveal the following account balances after adjusting entries are made on December 31, 2020.

Required:

Prepare the current liabilities and long-term debt portions of Fridley’s balance sheet at December 31, 2020. Provide a separate line item for each issue (do not combine separate bonds or notes payable), but some items may need to be split into more than one item.

Accounts payable	$ 62,500
Bonds payable (9.4%, due in 2027)	800,000
Lease liability*	41,500
Bonds payable (8.7%, due in 2023)	50,000
Deferred tax liability*	133.400
Discount on bonds payable
(94%, due in 2027)	12,600
Income taxes payable	26,900

* Long term liability

Interest payable	$ 38,700
Installment note payable (8%, equal
installments due 2021 to 2024)	120,000
Notes payable (7.8%, due in 2025)	400,000
Premium on notes payable
(7.8%, due in 2025)	6, [00
Note payable, 4% $50,000 face amount.
due in 2026 (net of discount)	31,900