Question

Presented here are liability items for O'Brian Inc. at December 31, 2022. Accounts payable $157,000 FICA taxes payable $7,800 Notes payable (due May 1, 2023) 20,000 Interest payable 40,000 Bonds payable (due 2026) 900,000 Notes payable (due 2024) 80,000 Unearned rent revenue 240,000 Income taxes payable 3,500 Discount on bonds payable 41,000 Sales taxes payable 1,700Prepare the liabilities section of Desmond's balance sheet.

Answer 1

Liabilities section of O'Brian Inc.'s balance sheet at December 31, 2022:

Accounts payable: $157,000
FICA taxes payable: $7,800
Notes payable (due May 1, 2023): $20,000
Interest payable: $40,000
Bonds payable (due 2026): $900,000
Notes payable (due 2024): $80,000
Unearned rent revenue: $240,000
Income taxes payable: $3,500
Discount on bonds payable: $41,000
Sales taxes payable: $1,700

Total liabilities: $1,490,000