The accounting records of Pacer Foods Inc. include the following items at December 31, 2020.

{Requirements}
1. Show how each relevant item would be reported on the Pacer Foods Inc. classified balance sheet, including headings and totals for current liabilities and long-term liabilities.
2. Answer the following questions about Pacer's financial position 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?
3. How many times did Pacer cover its interest expense during 2020 ?

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Mortgage note payable current Bonds payable, long-term. Mortgage note payable long-term Bonds payable, current portion, Interest expense...... Accumulated depreciation $ 50,000 equipment. $219,000 490,000 Discount on bonds payable (all long-term). 7,000 150,000 Operating income. 291,000 487,000 9,000 70,000 Equipment. 67,000 Interest payable.