Question

41) At December 31, 2018, Lansing Company's general ledger shows the following balances after posting adjusting entries: Accounts Payable |3% Notes Payable, due March 31, 2019 Salaries Payable Accumulated Depreciation 8% Notes Payable, due December 31, 2023 Estimated Warranty Liability Interest Payable FICA Tax Payable 10% Bonds Payable, due December 31, 2019 5% Bonds Payable, due December 31, 2024 Sales Tax Payable Unearned Service Revenue $150,000 180,000 127,000 114,000 150,000 200,000 13,000 10,000 1,000,000 1,000,000 1,000 5,000 Additional information: 1. $50,000 of the 8% note due December 31, 2021 is due on December 31, 2019. 2. The Estimated Warranty Liability relates to a multiple year product warranty. One-half of the liability will be honored in 2019, and one-half in 2020. 3. The Unearned Service Revenue pertains to a service contract to be performed in 2020. Required: Prepare the liability section of Lansing Company's balance sheet at December 31, 2018

Prepare the liability section of the balance sheet

Answer 1

Lansing Company Balance Sheet (Partial) As At December 31, 2018 Liabilities Current Liabilities 8% notes payable $ 50,000 estimated warranty liability $ 100,000 accounts payable $ 150,000 3% notes payable $ 180,000 salaries payable $ 127,000 interest payable $ 13,000 FICA tax payable $ 10,000 10% bonds payable $ 1,000,000 sales tax payable $1,000 Total Current Liabilities $ 1,631,000 Non Current Liabilities 8% notes payable $ 100,000 estimated warranty liability $ 100,000 unearned service revenue $5,000 5% bonds payable $ 1,000,000 Total Non Current Liabilities $ 1,205,000

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