Balance sheet disclosure of long-term liabilities (Learning Objective 6)

5–10 min.

Pangea Company has the following selected accounts after posting adjusting entries:

Accounts Payable............................................

Notes Payable, 3-month..................................

Accumulated Depreciation—Equipment .........

Notes Payable, 5-year, 8%..............................

Interest Expense .............................................

Interest Payable ..............................................

Mortgage Payable ...........................................

Sales Taxes Payable........................................

$45,000 60,000 25,000 65,000 8,000 4,000 80,000 13,000 Prepare the current liability section of Pangea Company’s balance sheet, assuming

$15,000 of the mortgage is payable next year.

AppendixLO1