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20 January, 20:24

The adjusted trial balance for Marigold Corp. at the end of the current year, 2021, contained the following accounts. 5-year Bonds Payable 8% $3000000 Interest Payable 48000 Premium on Bonds Payable 98000 Notes Payable (3 months.) 42000 Notes Payable (5 yr.) 167000 Mortgage Payable ($15000 due currently) 199000 Salaries and wages Payable 19000 Income Taxes Payable (due 3/15 of 2022) 26000 The total long-term liabilities reported on the balance sheet are

a. $3351000.

b. $3464000.

c. $3449000.

d. $3366000.

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  1. 20 January, 23:05
    0
    c. $3449000.

    Explanation:

    The relevant long-term liabilities items are as follows:

    5-year Bonds Payable 8% = $3,000,000

    Premium on Bonds Payable = $98,000

    Notes Payable (5 yr.) = $167,000

    Mortgage Payable ($15000 due currently) = $199,000 - $15,000 = $184,000

    Therefore, we have:

    Total long-term liabilities = $3,000,000 + $98,000 + $167,000 + $184,000 = $3,449,000.
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