As of December 1, year 2 a company obtained a $1,100,000 line of credit maturing in one year on which it has drawn $370,000, a $900,000 secured note due in four annual installments, and a $400,000 three-year balloon note. The company has no other liabilities. How should the company's debt be presented in its classified balance sheet on December 31, year 2 if no debt repayments were made in December?

2. Nor Corp. has an employee benefit plan for compensated absences that gives employees twelve paid vacation days and ten paid sick days per year.

Both vacation and sick days can be carried over indefinitely. Employees can elect to receive payment in lieu of vacation days; however, no payment is given for sick days not taken.

At December 31, 2004, Nor's unadjusted balance of liability for compensated absences was $24,000. North estimated that there were 175 vacation days and 80 sick days available at December 31, 2004. North's employees earn an average of $120 per day.

In its December 31, 2004 balance sheet, what amount of liability for compensated absences is Nor required to report?

3. On the first day of each month, Banner Mortgage Co. receives from Kent Corp. an escrow deposit of $3,500 for real estate taxes.

Banner records the $3,500 in an escrow account. Kent's 2005 real estate tax is $40,000, payable in equal installments on the first day of each calendar quarter. On December 31, 2004, the balance in the escrow account is $4,000.

On September 30, 2005, what amount should Banner show as an escrow liability to Kent?