Liability Classification Practice Problem - ACCT 2050, University of Minnesota--Twin Cities

1. Liability Classification

in Topic 9 (Problem 1 of 3)

Easy

Listed below are selected items from the financial statements of a company for the year ended December 31, Year 1.

Salaries Payable	63,000
Accounts payable	35,000
Current Maturity of Long-Term Debt	25,000
Bonds payable, due December 31, Year 20	2,200,000
Premium on Bonds Payable	14,000
Estimated Warranty Liability	10,000
Note Payable, due Dec. 31, Year 4	75,000
Unearned Revenue	25,000
Note Payable, due June 1, Year 2	8,000
Discount on Note Payable due June 1, Year 2	500

Determine the Total Current Liabilities to be on a classified balance sheet at December 31, Year 1.
Determine the Total Long-Term Liabilities to be reported on a classified balance sheet at December 31, Year 1.

Total Current Liabilities - 165,500
Total Long-Term Liabilities - 2,289,000