The following items appear on the balance sheet of a company with a two-month operating cycle. Identify the proper classification of each item as follows: C if it is a current liability, L if it is a long-term liability, or N if it is not a liability.

_____ 1 Notes payable (due in 120 days).

_____ 2 Notes payable (mature in five years).

_____ 3Notes payable (due in 6 to 12 months).

_____ 4 Current portion of long-term debt.

_____ 5 Notes payable (due in 13 to 24 months).

_____ 6 Sales taxes payable.

_____ 7 Accounts receivable.

_____ 8 Wages payable.

_____ 9 FUTA taxes payable.

_____ 10 Accrued payroll payable.

AppendixLO1