James Smith, a recent accounting graduate, has just started working for Grant Ross & Company, an importer of single malt scotch whiskey. Grant Ross purchases single malt scotch whiskey in Scotland, transports it to its warehouse in New Orleans, Louisiana, and stores it for up to twenty years in charred oaken casks. None of the whiskey is ever sold until after it has aged at least twelve years. To finance expansion, Grant Ross recently sold $2,500,000 of ten-year bonds. Smith believes that Grant Ross should classify the bonds as long-term debt but is not completely sure.

Prepare a brief analysis of the major issue or issues in cases.

For each issue identified in case, clearly indicate an acceptable proposed solution.