Need help with part B

L$010-4,$

A resentation resentatior

Note payable to Northwest Bank

Income taxes payable.

Accrued expenses and payroll taxes....

Mortgage note payable

Accrued interest on mortgage note payable

Trade accounts payable. $...$

Unearned revenue

Potential liability in pending lawsuit

The following are selected items from the accounting records of Denver Chocolates for the year ended December $31,2021.$

Other Information

The note payable to Northwest Bank is due in $60$ days. Arrangements have been made to renew this note for an additional $12$ months.

The mortgage requires payments of $$6,000$ per month. An amortization table shows that its balance will be paid down to $$739,000$ by December $31,2022.$

Accrued interest on the mortgage note payable is paid monthly. The next payment is due near the end of the first week in January $2022.$

Denver Chocolates has been sued for $$100,000$ in a contract dispute. It is not possible at this time, however, to make a reasonable estimate of the possible loss, if any, that the company may have sustained.

Instructions

a$.$ Using the information provided, prepare the current and long$-$term liability sections of the Denver Chocolates balance sheet dated December $31,2021.($Within each classification, items may be listed in any order.$)$ presentation of the company's liabilities.

B$.$ Explain briefly how the information in each of the four paragraphs influenced your presentation of the companys liabilities.