Brief Exercise 11-01

Jamison Company has the following obligations at December 31: For each obligation, indicate whether it should be classified as a current liability. (Assume an operating cycle of less than one year.)

		Obligations
(a)		A note payable for $100,000 due in 2 years.		Not a current liabilityCurrent liability
(b)		A 10-year mortgage payable of $300,000 payable in ten $30,000 annual payments.		Not a current liabilityCurrent liability
(c)		Interest payable of $15,000 on the mortgage.		Not a current liabilityCurrent liability
(d)		Accounts payable of $60,000.		Not a current liabilityCurrent liability