The adjusted trial balance for Ray Corporation at July 31, 2021, the corporation?s fiscal year end, contained the following:

Of the lease liability amount, $16,250 is due within the next year. Total payments on the note payable in the fiscal year 2022 will be $27,000: $7,000 is for interest and $20,000 for principal repayments.

Instructions

a. Prepare the non-current liabilities section of the balance sheet as at July 31, 2021.

b. Some of the accounts above belong in the balance sheet but not in its non-current liabilities section. What is the correct classification for them?

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Accounts payable Notes payable $140,000 65,000 35,000 10,000 $ 96,000 Accounts receivable Bonds payable, due 2025 Interest payable 112,000 205,000 5,000 Lease liability Note receivable, due December 2021 Unearned revenue