Reference no: EM131591595

Question: As of December 31 of the current year, Petersen Corporation has prepared the following information regarding its liabilities and other obligations:

- Notes payable, of which $12,000 will be repaid within the next 12 months                                                  $ 80,000

- Interest expense that will result from existing liabilities over the next 12 months                                           125,000

- Lawsuit pending against Petersen, in which $600,000 is claimed in damages.                           
Legal counsel can make no reasonable estimate of the company's ultimate liability at this time                           600,000

- 20-year bond issue that matures in two years. The entire amount will be repaid from a bond sinking fund           900,000

- Accrued interest on the 20-year bond issue as of the balance sheet date                                                      36,000

- Three-year commitment to John Hoskins as chief financial officer at a salary of $275,000 per year                    825,000

- Note payable due within 90 days (but that is approved to be extended for an additional 18 months                     75,000

- Cash deposits from customers for goods and services to be delivered over the next nine months                       300,000

- Income taxes, of which $100,000 are currently payable and the remainder deferred indefinitely                         185,000

Prepare a listing of the Petersen Corporation's current and long-term liabilities as they should be presented in the company's December 31 balance sheet. (Hint: Present notes payable that are expected to be paid in the next year as a single amount in current liabilities and combine all other notes payable in a single amount of notes payable in the long-term liabilities.)