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The following are selected items from the accounting records of Denver Chocolates for the year ended December 3 1 , 2 0 2 4 :Note
The following are selected items from the accounting records of Denver Chocolates for the year ended December :Note payable to Northwest Bank$Income taxes payableAccrued expenses and payroll taxesMortgage note payableAccrued interest on mortgage note payableTrade accounts payableUnearned revenuePotential liability in pending lawsuitOther InformationThe note payable to Northwest Bank is due in days. Arrangements have been made to renew this note for an additional months.The mortgage requires payments of $ per month. An amortization table shows that its balance will be paid down to $ by December Accrued interest on the mortgage note payable is paid monthly. The next payment is due near the end of the first week in January Denver Chocolates has been sued for $ 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.InstructionsUsing the information provided, prepare the current and longterm liability sections of the Denver Chocolates balance sheet dated December Within each classification, items may be listed in any order.Explain briefly how the information in each of the four numbered paragraphs influenced your presentation of the companys liabilities
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