The following items appear on the balance sheet of Crunched Auto Body Repair Shop, which has a 12-month operating cycle. Select the proper classification of each item as follows: C if it is a current liability, L if it is a non-current liability, or N if it is not a liability. ClassificationItema. Wages payable.b.Notes payable in 60 days.c. Mortgage payable (payments due in the next 12 months).d. Notes receivable in 90 days.e. Note payable (matures in 5 years).f. Mortgage payable (payments due after the next 12 months).g. Notes payable due in 18 months.h. Income taxes payable.i.Estimated warranty liability.j. Allowance for doubtful accounts.

Lets understand the basics. Current liability is a short term obligation which is payable within one…

Answered: The following items appear on the…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 1PB: Sub-Cinema Inc. borrowed $10,000 on Jan. 1 and will repay the loan with 12 equal payments made at...

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The following items appear on the balance sheet of Crunched Auto Body Repair Shop, which has a 12-month operating cycle. Select the proper classification of each item as follows: C if it is a current liability, L if it is a non-current liability, or N if it is not a liability.

Classification
Item
a. Wages payable.
b.
Notes payable in 60 days.
c. Mortgage payable (payments due in the next 12 months).
d. Notes receivable in 90 days.
e. Note payable (matures in 5 years).
f. Mortgage payable (payments due after the next 12 months).
g. Notes payable due in 18 months.
h. Income taxes payable.
i.
Estimated warranty liability.
j. Allowance for doubtful accounts.

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