Reference no: EM133254082

Exercise 1: Liabilities Section Report

As of December 31, 20x1 the company Taino Borinquen presented in its adjusted Balance Sheet the following accounts, with their respective balances:

Accounts payable $ 95,000
Note payable, 3-month 60,000
Accumulated depreciation-Equipment   $ 24,000
Estimated uncollectible accounts 5,000
Bonds payable, 10-year, 7% semi-annual 500,000
Discount on bonds payable 20,000
Note payable, 5-year, 6% 90,000
Salary expense to be paid 8,000
Interest payable 6,000
Mortgage 150,000
Sales tax payable (SUT) 38,000

Additional information:

- $30,000 of the mortgage is due on or before December 31, 20x2.

- The Taino Borinquen company is refinancing the note payment that is due in three months to three months from now, for a period of two years starting the first installment on January 2, 20x2, 20x3, 20x3. first installment on January 2, 20x3.

Instructions:

1. Prepare the liabilities section of the company's Statement of Condition. Taino Borinquen, INC. as of December 31, 20x1.