Respuesta :
Answer:
The categorization is shown below:
Explanation:
The categorization is shown below:
(a) A note payable for $100,000 due in 2 years = Long term liabilities as it is exceeded one year
(b) A 10-year mortgage payable of $200,000 payable in ten $20,000 annual payments.= Current liabilities and the long term liabilities . The annual payment is considered current liabilities and from next year it would be considered as long term liabilities
(c) Interest payable of $15,000 on the mortgage = Current liabilities as it is for one year
(d) Accounts payable of $60,000. = Current liabilities as it is for one year
Answer:
A. Long Term Liability
B. Long Term Liability
C. Current Liability
D. Current Liability
Explanation:
Liability is a financial burden or obligation to pay .
Short term liabilities (Current) are the liabilities due & payable within one accounting year. Long term (Non current) liabilities are the liabilities due & payable over a long period of time, more than an accounting year.
A note payable for $100,000 due in 2 years : is payable beyond one accounting year, hence Long term liability
A 10-year mortgage payable of $200,000 payable in ten $20,000 annual payments : is also payable beyond one accounting year, hence Long term liability
Interest payable of $15,000 on the mortgage (outstanding expense) has been accrued already & is now due to be paid within current accounting year, hence Current Liability. [All other interests payable in long run are however Long Term Liability]
Accounts payable of $60,000 : are likely to be payable within one accounting year, hence Current liability
