Question
Exercise 10-1 Classifying liabilities LO1 The following list of items appear on the balance sheet of Crunched Auto Body Repair Shop, which has a 12-month
Exercise 10-1 Classifying liabilities LO1
The following list of items appear on the balance sheet of Crunched Auto Body Repair Shop, which has a 12-month operating cycle. Identify the proper classification of each item. In the space beside each item write a C if it is a current liability, an L if it is a non-current liability, or an N if it is not a liability.
a. | Wages payable. | |||||||||||||||||||||||||||||||
b. | Notes payable in 60 days. | |||||||||||||||||||||||||||||||
c. | Mortgage payable (payments due in the next 12 months). | |||||||||||||||||||||||||||||||
d. | Notes receivable in 90 days. | |||||||||||||||||||||||||||||||
e. | Note payable (matures in 5 years). | |||||||||||||||||||||||||||||||
f. | Mortgage payable (payments due after the next 12 months). | |||||||||||||||||||||||||||||||
g. | Notes payable due in 18 months. | |||||||||||||||||||||||||||||||
h. | Income taxes payable. | |||||||||||||||||||||||||||||||
i. | Estimated warranty liability. | |||||||||||||||||||||||||||||||
j. | Allowance for doubtful accounts. Exercise 10-1 Classifying liabilities LO1 The following list of items appear on the balance sheet of Crunched Auto Body Repair Shop, which has a 12-month operating cycle. Identify the proper classification of each item. In the space beside each item write a C if it is a current liability, an L if it is a non-current liability, or an N if it is not a liability.
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