The accounting records of Toronto Financial Services include the following items at December 31, 2020:

{Requirements}
1. Show how each relevant item would be reported on Toronto Financial Services's classified balance sheet. Include headings and totals for current liabilities and long-term liabilities.
2. Answer the following questions about the financial position of Toronto Financial Services at December 31, 2020:

a. What is the carrying amount of the bonds payable? (Combine the current and long-term amounts.)

b. Why is the interest payable amount so much less than the amount of interest expense? (Challenge)
3. How many times did Toronto cover its interest expense during 2020 ?

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Premium on bonds payable (all long-term).. Interes: payable...... Operating income.. Interest expense. Bonds payable, current portion Accumulated depreciation, building. Mortgage note payable, long-term..... Bonds payable, long-term.. Building $ 13,000 3,900 104,000 39.000 50,000 70,000 215.000 250.000 160.000