Panorama Properties Reported the Following Account Balances and Events at Their

question 101

Essay

Panorama Properties reported the following account balances and events at their September
30, 2014 year-end.None of the year-end adjusting entries have been made.
$42,000 Amounts owing to suppliers
$33,700 Amount outstanding on the line of credit, estimated interest owing $225.
$18,750 Amounts withheld from employee paycheques to be remitted Oct 10.
$500,000 Bonds outstanding, 6% semi-annual coupon.
$24,600 Unamortized portion of bond premium.The last coupon was paid September 30
$135,700 Amount of shortfall of pension assets relative to pension obligations at year-end.
$125,000 Balance outstanding on mortgages.Next payment, due October 1, consists of $1,042 of interest and
$1,458 of principal.The next 12 months payments (including the one due October 1) will total $30,000 of which $16,500 will be applied to the principal.
$22,400 Rent payments received in advance from tenants for October.
Required:
Prepare the liability section of their balance sheet as at September 30, 2014 including the effects of any required adjustments.

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Definitions:

Sales Transactions

These are dealings or agreements carried out between two parties, where goods or services are exchanged for money or other considerations.

Interest Calculation

A method used to determine the amount of interest owed or earned over time, based on the principal amount, the rate of interest, and the period over which it is calculated.

Service Performed

The completion of an awaited task or the provision of work for customers as part of a contractual agreement.