S9-15. (Learning Objective 5: Reporting liabilities, including capital lease obligations)

Lovely Home, Inc., includes the following selected accounts in its general ledger at December 31, 20X0:

Prepare the liabilities section of Lovely Home, Inc.’s Balance Sheet at December 31, 20X0, to show how the company would report these items. Report total current liabilities and total liabilities.

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Bonds payable. Equipment... $402,000 113,000 Current portion of bonds payable. 50,000 Notes payable, long-term...... 320,000 Interest payable (due March 1, 20X1).. 2,000 Accounts payable..... 35,000 Discount on bonds payable (all long-term).. 11,000 Accounts receivable.... 28,000