Reference no: EM13391916
The adjusted trial balance for Holly Corporation at the end of 2014 contained the following accounts:
Bonds payable, 10%.............................................................. $700,000
Interest payable..................................................................... 20,000
Discount on bonds payable................................................... 40,000
Lease liability.......................................................................... 50,000
Mortgage notes payable, 9%, due 2017................................ 90,000
Accounts payable.................................................................. 120,000
Instructions
a) Prepare the long-term liabilities section of the balance sheet.
b) Indicate the proper balance sheet classification for the accounts listed above that do not belong in the long-term liabilities section.