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Beth Morgan, controller of Larkspur Corporation, is currently preparing the 2017 financial report. She is trying to decide how to classify the following items: 1.

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Beth Morgan, controller of Larkspur Corporation, is currently preparing the 2017 financial report. She is trying to decide how to classify the following items: 1. Account payable of $173,000 owed to suppliers for inventory 2. A $63,000 note payable that matures in three months. The company is planning to acquire a five-year loan from its bank to pay off the note. The bank has agreed to finance the note 3. A $470,000 mortgage: $69.000 payable within twelve months, and the remaining $401,000 to be paid over the next six years. 4. The sum of $9,000 owed to the phone company for service during December 5. Advances of $26.000 received from a customer. The contract between the customer and Larkspur Corporation states that if the company does not deliver the goods within sex months, the $26,000 is to be returned to the customer. 6. The sum of $14,000 due the federal government for income tax withheld from employees during the last quarter of 2017. The government requires that withholdings be submitted by the end of the next quarter to the Internal Revenue Service 7. A $126.000 note payable: $31,000 is payable within 12 months, and the remaining $95.000 is to be paid over the next two years. Larkspur Corporation plans to issue common stock to the creditor for the portion due during the next 12 months. 3. The company declared a cash dividend of $53,000 on December 29, 2017. The dividend is to be paid on January 21, 2018 Classiy each of the items as a current liability or as a long-term liability. (Note: Some items may be classified partially as current and partially as long term.) Classification Item Current Long-Term LINK TO TEXT Compute the total amount that should be classified as current liabilities. Current Liabilities LINK TO TEXT Compute the total amount that should be classified as long-term liabilities. Long-term Liabilities

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