Question

At December 31, 2020, Martinez Corporation has the following account balances: Bonds payable, due January 1, 2029 $2,300,000 Discount on bonds payable 95,000 Interest payable 88,000 Show how the above accounts should be presented on the December 31, 2020, balance sheet, including the proper classifications. (Enter account name only and do not provide descriptive information.)

Answer 1

Explanation:

The presentation of the balance for the given accounts is presented below:

                                         Martinez Corporation

                                         December 31, 2020

                                         Balance sheet

Current liabilities

Interest payable                                                           $88,000

Long term liabilities

Bond payable due                           $2,300,000

Less: Discount on bonds payable -$95,000             $2,205,000