On December 31, Jacoby Company received a $385 bill for the purchase of supplies in December that it will not pay for until January 15. Jacoby follows a policy of recording all prepaid expenses to asset accounts at the time of cash payment. The adjusting entry needed on December 31 to accrue this cost is:

The amount of long-term liabilities to be reported on the Balance Sheet at the end of the current year is $70.000

Explanation:

Concepts / definitions:

Long-term liabilities or noncurrent liabilities are knowns as obligations that companies have to pay in more than 1 year (12 months) or for some companies, after the company’s operating cycle (it is the time that the company takes to convert their inventory into cash).  

Examples: Long term leases and bonds (that are generally are designed to be paid in more than one year).

Classification

Notes Payable (current) $ 10,000

Accounts Payable    $ 5,000

Salaries Payable            $ 2,000

Sales Tax Payable    $ 2,000

Current liabilities          $ 19,000

Bonds Payable                  $ 50,000

Notes Payable (long-term)  $ 20,000

Long-term liabilities         $ 70,000