Problem 13 4 Various liabilities LO13 1, 13 2, 13 3, 13 4 The unadjusted trial balance of the Manufacturing Equitable at December 31, 2018, the end of its fiscal year, included the following account balances Manufacturings 2018 financial statements were issued on April 1, 2019 Accounts receivable $ 97,250 Accounts payable 52,600 Bank notes payable 618,000 Mortgage note payable 1,334,000 Other information The bank notes, issued August 1, 2018, are due on July 31, 2019, and pay interest at a rate of 15 , payable at maturity The mortgage note is due on March 1, 2019 Interest at 14 has been paid up to December 31 (assume 14 is a realistic rate) Manufacturing intended at December 31, 2018, to refinance the note on its due date with a new 10 year mortgage note In fact, on March 1, Manufacturing paid $352,000 in cash on the principal balance and refinanced the remaining $982,000 Included in the accounts receivable balance at December 31, 2018, were two subsidiary accounts that had been overpaid and had credit balances totaling $18,400 The accounts were of two major customers who were expected to order more merchandise from Manufacturing and apply the overpayments to those future purchases On November 1, 2018, Manufacturing rented a portion of its factory to a tenant for $29,400 per year, payable in advance The payment for the 12 months ended October 31, 2019, was received as required and was credited to rent revenue Required 1 Prepare any necessary adjusting journal entries at December 31, 2018, pertaining to each item of other information (ad) 2 Prepare the current and long term liability sections of the December 31, 2018, balance sheet Complete this question by entering your answers in the tabs below Required 1 Required 2 Prepare the current and long term liability sections of the December 31, 2018, balance sheet Balance Sheet (partial) At December 31, 2018 Current liabilities 52,600 618,000 Current portion of long term352,000 24,500 Advances from customers 18,400 24,500 Accounts payable Bank notes payable debt Interest payable Deferred revenue Total current liabilities $1,090,000 Long term liabilities Mortgage note payable $982,000 KRequired 1 Required 2

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Problem 13-4 Various liabilities [LO13-1, 13-2, 13-3, 13-4] The unadjusted trial balance of the Manufacturing Equitable at December 31, 2018, the end of its fiscal

Problem 13-4 Various liabilities [LO13-1, 13-2, 13-3, 13-4]

The unadjusted trial balance of the Manufacturing Equitable at December 31, 2018, the end of its fiscal year, included the following account balances. Manufacturings 2018 financial statements were issued on April 1, 2019.


Accounts receivable	$	97,250
Accounts payable		52,600
Bank notes payable		618,000
Mortgage note payable		1,334,000

Other information:

The bank notes, issued August 1, 2018, are due on July 31, 2019, and pay interest at a rate of 15%, payable at maturity.
The mortgage note is due on March 1, 2019. Interest at 14% has been paid up to December 31 (assume 14% is a realistic rate). Manufacturing intended at December 31, 2018, to refinance the note on its due date with a new 10-year mortgage note. In fact, on March 1, Manufacturing paid $352,000 in cash on the principal balance and refinanced the remaining $982,000.
Included in the accounts receivable balance at December 31, 2018, were two subsidiary accounts that had been overpaid and had credit balances totaling $18,400. The accounts were of two major customers who were expected to order more merchandise from Manufacturing and apply the overpayments to those future purchases.
On November 1, 2018, Manufacturing rented a portion of its factory to a tenant for $29,400 per year, payable in advance. The payment for the 12 months ended October 31, 2019, was received as required and was credited to rent revenue.

Required: 1. Prepare any necessary adjusting journal entries at December 31, 2018, pertaining to each item of other information (ad). 2. Prepare the current and long-term liability sections of the December 31, 2018, balance sheet. image text in transcribed

Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the current and long-term liability sections of the December 31, 2018, balance sheet. Balance Sheet (partial) At December 31, 2018 Current liabilities 52,600 618,000 Current portion of long-term352,000 24,500 Advances from customers 18,400 24,500 Accounts payable Bank notes payable debt Interest payable Deferred revenue Total current liabilities $1,090,000 Long-term liabilities Mortgage note payable $982,000 KRequired 1 Required 2