Brief Exercise 10-1

Busch Company has these obligations at December 31. For each obligation, indicate whether it should be classified as a current liability, noncurrent liability, or both.

(a)		A note payable for $100,000 due in 2 years.		Current liabilityNoncurrent liabilityBoth
(b)		A 10-year mortgage payable of $200,000 payable in ten $20,000 annual payments.		BothCurrent liabilityNoncurrent liability
(c)		Interest payable of $15,000 on the mortgage.		Noncurrent liabilityBothCurrent liability
(d)		Accounts payable of $60,000.		Current liabilityNoncurrent liabilityBoth