Reporting Liabilities}

Mumbai Electronics had the following obligations:

a. A legally enforceable claim against the business to be paid in three months.

b. A guarantee given by a seller to a purchaser to repair or replace defective goods during the first six months following a sale.

c. An amount payable to Royal Bank in 10 years.

d. An amount to be paid next year to National Bank on a long-term note payable.

\section*{Required:}

CONCEPTUAL CONNECTION Describe how each of these items should be reported on the statement of financial position.

\section*{Exercise