PROBLEM 10.8A Financial Statement Presentation of Liabilities LO10-1, LO10-5, LO10-6, LO10-8, LO10-10 As of December 31 of the current year, Petersen Corporation has prepared the following information regarding its liabilities and other obligations. Notes payable, of which $12,000 will be repaid within the next 12 months Interest expense that will result from existing liabilities over the next 12 months Lawsuit pending against Petersen, in which $600,000 is claimed in damages. Legal counsel can make no reasonable estimate of the company 20-year bond issue that matures in two years. The entire amount will be repaid from a bond sinking fund Accrued interest on the 20-year bond issue as of the balance sheet date Three-year commitment to John Hoskins as chief financial officer at a salary of $275,000 per year Note payable due within 90 days (but that is approved to be extended for an additional 18 months) Cash deposits from customers for goods and services to be delivered over the next nine months Income taxes, of which $100,000 are currently payable and the remainder deferred indefinitely PROBLEM 10.8A Financial Statement Presentation of Liabilities LO10-1, LO10-5, LO10-6, LO10-8, LO10-10 As of December 31 of the current year, Petersen Corporation has prepared the following information regarding its liabilities and other obligations. epaid within the next 12 months $ 80,000 ting liabilities over the next 12 months 125,000 ch $600,000 is claimed in damages. Legal counsel can make no reasonable estimate of the company's ultimate liability at this time 600,000 ars. The entire amount will be repaid from a bond sinking fund 900,000 e as of the balance sheet date as chief financial officer at a salary of $275,000 per year t is approved to be extended for an additional 18 months) and services to be delivered over the next nine months rently payable and the remainder deferred indefinitely 36,000 825,000 75,000 300,000 185,000 Instructions a. Prepare a listing of the Petersen Corporation's current and long-term liabilities as they should be presented in the company's December 31 balance sheet. b. Briefly explain why you have excluded any of the listed items in your listing of current and long-term liabilities.