5TI - Horngren'S Financial And Managerial Accounting

Question

Weaver Corporation includes the following selected accounts in its general ledger on December 31, 2018:

Notes Payable (long-term) \( 75,000 Interest Payable (due next year) \) 720

Bonds Payable (long-term) 195,000 Sales Tax Payable 480

Accounts Payable 20,400 Premium on Bonds Payable 5,850

Salaries Payable 1,680 Estimated Warranty Payable 1,080

Prepare the liabilities section of Weaver Corporation’s balance sheet at December 31, 2018.

Step-by-Step Solution

Answer

The total liabilities on the balance sheet are $299,490

Step 1: Definition of accounts payable

Accounts payable is when the company buys goods on credit from the supplier.

Step 2: Liabilities side of balance sheet

Weaver Corporation
Balance Sheet
As on December 31, 2018
Liabilities
Current Liabilities:
Accounts Payable	$20,400
Salaries Payable	$1,680
Warranty Payable	$1,080
Sales Tax Payable	$480
Premium on Bonds Payable	$5,850
Total Current Liabilities		$29,490
Long-Term Liabilities
Notes Payable	$75,000
Bonds Payable	$195,000
Total Long-Term Liabilities		$270,000
Total Liabilities		$299,490