Current Liability: Current liabilities are the short term obligations due to an organization. They are generally due for a year or within the normal operating cycle of business. They are shown in balance sheet. To identify: Whether items are current liabilities or not

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Answer 1

Question

Chapter 9, Problem 1QS

To determine

Current Liability:

Current liabilities are the short term obligations due to an organization. They are generally due for a year or within the normal operating cycle of business. They are shown in balance sheet.

To identify: Whether items are current liabilities or not

Expert Solution & Answer

Explanation of Solution

1.

Portion of long term notes due in 15 months is a current liability.

Portion of long term notes due is payable within 15 months. Company’s operating cycle is of 15 months. So it is payable within company’s operating cycle. So it is a current liability.

Thus, portion of long term notes is a current liability.

2.

Note Payable maturing in 2 years. is a non-current liability

Portion of note payable maturing in 2 years is a non-current liability. Company’s operating cycle is of 15 months. It is not payable within company’s operating cycle or within one year. So it is a non-current liability.

Thus, note payable maturing in 2 years. is a non-current liability

3.

Note payable due in 18 months. is a non-current liability.

Note payable due in 18 months is a non-current liability. Company’s operating cycle is of 15 months. It is not payable within company’s operating cycle or within one year. So it is a non-current liability

Thus, note payable due in 18 months. is a non-current liability.

4.

Note payable due in 11 months. is a current liability.

Note payable due in 11 months is a current liability. Company’s operating cycle is of 15 months. It is payable within company’s operating cycle or within one year. So it is a current liability

Thus, note payable due in 11 months. is a current liability.

5.

FICA taxes payable. is a current liability

Taxes are generally payable within 1 year. This is company’s obligation towards government. So, it is a current liability

Thus, FICA taxes payable is a current liability.

6.

Salaries payable is a current liability

Salary due is payable within one year. This is company’s obligation towards employees. So, it is a current liability

Thus, salaries payable is a current liability.

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Answer 2

Question

Chapter 9, Problem 1QS

To determine

Current Liability:

Current liabilities are the short term obligations due to an organization. They are generally due for a year or within the normal operating cycle of business. They are shown in balance sheet.

To identify: Whether items are current liabilities or not

Expert Solution & Answer

Explanation of Solution

1.

Portion of long term notes due in 15 months is a current liability.

Portion of long term notes due is payable within 15 months. Company’s operating cycle is of 15 months. So it is payable within company’s operating cycle. So it is a current liability.

Thus, portion of long term notes is a current liability.

2.

Note Payable maturing in 2 years. is a non-current liability

Portion of note payable maturing in 2 years is a non-current liability. Company’s operating cycle is of 15 months. It is not payable within company’s operating cycle or within one year. So it is a non-current liability.

Thus, note payable maturing in 2 years. is a non-current liability

3.

Note payable due in 18 months. is a non-current liability.

Note payable due in 18 months is a non-current liability. Company’s operating cycle is of 15 months. It is not payable within company’s operating cycle or within one year. So it is a non-current liability

Thus, note payable due in 18 months. is a non-current liability.

4.

Note payable due in 11 months. is a current liability.

Note payable due in 11 months is a current liability. Company’s operating cycle is of 15 months. It is payable within company’s operating cycle or within one year. So it is a current liability

Thus, note payable due in 11 months. is a current liability.

5.

FICA taxes payable. is a current liability

Taxes are generally payable within 1 year. This is company’s obligation towards government. So, it is a current liability

Thus, FICA taxes payable is a current liability.

6.

Salaries payable is a current liability

Salary due is payable within one year. This is company’s obligation towards employees. So, it is a current liability

Thus, salaries payable is a current liability.

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Answer 3

Question

Chapter 9, Problem 1QS

To determine

Current Liability:

Current liabilities are the short term obligations due to an organization. They are generally due for a year or within the normal operating cycle of business. They are shown in balance sheet.

To identify: Whether items are current liabilities or not

Expert Solution & Answer

Explanation of Solution

1.

Portion of long term notes due in 15 months is a current liability.

Portion of long term notes due is payable within 15 months. Company’s operating cycle is of 15 months. So it is payable within company’s operating cycle. So it is a current liability.

Thus, portion of long term notes is a current liability.

2.

Note Payable maturing in 2 years. is a non-current liability

Portion of note payable maturing in 2 years is a non-current liability. Company’s operating cycle is of 15 months. It is not payable within company’s operating cycle or within one year. So it is a non-current liability.

Thus, note payable maturing in 2 years. is a non-current liability

3.

Note payable due in 18 months. is a non-current liability.

Note payable due in 18 months is a non-current liability. Company’s operating cycle is of 15 months. It is not payable within company’s operating cycle or within one year. So it is a non-current liability

Thus, note payable due in 18 months. is a non-current liability.

4.

Note payable due in 11 months. is a current liability.

Note payable due in 11 months is a current liability. Company’s operating cycle is of 15 months. It is payable within company’s operating cycle or within one year. So it is a current liability

Thus, note payable due in 11 months. is a current liability.

5.

FICA taxes payable. is a current liability

Taxes are generally payable within 1 year. This is company’s obligation towards government. So, it is a current liability

Thus, FICA taxes payable is a current liability.

6.

Salaries payable is a current liability

Salary due is payable within one year. This is company’s obligation towards employees. So, it is a current liability

Thus, salaries payable is a current liability.

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Answer 4

Question

Chapter 9, Problem 1QS

To determine

Current Liability:

Current liabilities are the short term obligations due to an organization. They are generally due for a year or within the normal operating cycle of business. They are shown in balance sheet.

To identify: Whether items are current liabilities or not

Expert Solution & Answer

Explanation of Solution

1.

Portion of long term notes due in 15 months is a current liability.

Portion of long term notes due is payable within 15 months. Company’s operating cycle is of 15 months. So it is payable within company’s operating cycle. So it is a current liability.

Thus, portion of long term notes is a current liability.

2.

Note Payable maturing in 2 years. is a non-current liability

Portion of note payable maturing in 2 years is a non-current liability. Company’s operating cycle is of 15 months. It is not payable within company’s operating cycle or within one year. So it is a non-current liability.

Thus, note payable maturing in 2 years. is a non-current liability

3.

Note payable due in 18 months. is a non-current liability.

Note payable due in 18 months is a non-current liability. Company’s operating cycle is of 15 months. It is not payable within company’s operating cycle or within one year. So it is a non-current liability

Thus, note payable due in 18 months. is a non-current liability.

4.

Note payable due in 11 months. is a current liability.

Note payable due in 11 months is a current liability. Company’s operating cycle is of 15 months. It is payable within company’s operating cycle or within one year. So it is a current liability

Thus, note payable due in 11 months. is a current liability.

5.

FICA taxes payable. is a current liability

Taxes are generally payable within 1 year. This is company’s obligation towards government. So, it is a current liability

Thus, FICA taxes payable is a current liability.

6.

Salaries payable is a current liability

Salary due is payable within one year. This is company’s obligation towards employees. So, it is a current liability

Thus, salaries payable is a current liability.

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Answer 5

Chapter 9, Problem 1QS

To determine

Current Liability:

Current liabilities are the short term obligations due to an organization. They are generally due for a year or within the normal operating cycle of business. They are shown in balance sheet.

To identify: Whether items are current liabilities or not

Expert Solution & Answer

Explanation of Solution

1.

Portion of long term notes due in 15 months is a current liability.

Portion of long term notes due is payable within 15 months. Company’s operating cycle is of 15 months. So it is payable within company’s operating cycle. So it is a current liability.

Thus, portion of long term notes is a current liability.

2.

Note Payable maturing in 2 years. is a non-current liability

Portion of note payable maturing in 2 years is a non-current liability. Company’s operating cycle is of 15 months. It is not payable within company’s operating cycle or within one year. So it is a non-current liability.

Thus, note payable maturing in 2 years. is a non-current liability

3.

Note payable due in 18 months. is a non-current liability.

Note payable due in 18 months is a non-current liability. Company’s operating cycle is of 15 months. It is not payable within company’s operating cycle or within one year. So it is a non-current liability

Thus, note payable due in 18 months. is a non-current liability.

4.

Note payable due in 11 months. is a current liability.

Note payable due in 11 months is a current liability. Company’s operating cycle is of 15 months. It is payable within company’s operating cycle or within one year. So it is a current liability

Thus, note payable due in 11 months. is a current liability.

5.

FICA taxes payable. is a current liability

Taxes are generally payable within 1 year. This is company’s obligation towards government. So, it is a current liability

Thus, FICA taxes payable is a current liability.

6.

Salaries payable is a current liability

Salary due is payable within one year. This is company’s obligation towards employees. So, it is a current liability

Thus, salaries payable is a current liability.

Answer 6

Chapter 9, Problem 1QS

To determine

Current Liability:

Current liabilities are the short term obligations due to an organization. They are generally due for a year or within the normal operating cycle of business. They are shown in balance sheet.

To identify: Whether items are current liabilities or not

Expert Solution & Answer

Explanation of Solution

1.

Portion of long term notes due in 15 months is a current liability.

Portion of long term notes due is payable within 15 months. Company’s operating cycle is of 15 months. So it is payable within company’s operating cycle. So it is a current liability.

Thus, portion of long term notes is a current liability.

2.

Note Payable maturing in 2 years. is a non-current liability

Portion of note payable maturing in 2 years is a non-current liability. Company’s operating cycle is of 15 months. It is not payable within company’s operating cycle or within one year. So it is a non-current liability.

Thus, note payable maturing in 2 years. is a non-current liability

3.

Note payable due in 18 months. is a non-current liability.

Note payable due in 18 months is a non-current liability. Company’s operating cycle is of 15 months. It is not payable within company’s operating cycle or within one year. So it is a non-current liability

Thus, note payable due in 18 months. is a non-current liability.

4.

Note payable due in 11 months. is a current liability.

Note payable due in 11 months is a current liability. Company’s operating cycle is of 15 months. It is payable within company’s operating cycle or within one year. So it is a current liability

Thus, note payable due in 11 months. is a current liability.

5.

FICA taxes payable. is a current liability

Taxes are generally payable within 1 year. This is company’s obligation towards government. So, it is a current liability

Thus, FICA taxes payable is a current liability.

6.

Salaries payable is a current liability

Salary due is payable within one year. This is company’s obligation towards employees. So, it is a current liability

Thus, salaries payable is a current liability.

Answer 7

Chapter 9, Problem 1QS

To determine

Current Liability:

Current liabilities are the short term obligations due to an organization. They are generally due for a year or within the normal operating cycle of business. They are shown in balance sheet.

To identify: Whether items are current liabilities or not

Answer 8

Expert Solution & Answer

Explanation of Solution

1.

Portion of long term notes due in 15 months is a current liability.

Portion of long term notes due is payable within 15 months. Company’s operating cycle is of 15 months. So it is payable within company’s operating cycle. So it is a current liability.

Thus, portion of long term notes is a current liability.

2.

Note Payable maturing in 2 years. is a non-current liability

Portion of note payable maturing in 2 years is a non-current liability. Company’s operating cycle is of 15 months. It is not payable within company’s operating cycle or within one year. So it is a non-current liability.

Thus, note payable maturing in 2 years. is a non-current liability

3.

Note payable due in 18 months. is a non-current liability.

Note payable due in 18 months is a non-current liability. Company’s operating cycle is of 15 months. It is not payable within company’s operating cycle or within one year. So it is a non-current liability

Thus, note payable due in 18 months. is a non-current liability.

4.

Note payable due in 11 months. is a current liability.

Note payable due in 11 months is a current liability. Company’s operating cycle is of 15 months. It is payable within company’s operating cycle or within one year. So it is a current liability

Thus, note payable due in 11 months. is a current liability.

5.

FICA taxes payable. is a current liability

Taxes are generally payable within 1 year. This is company’s obligation towards government. So, it is a current liability

Thus, FICA taxes payable is a current liability.

6.

Salaries payable is a current liability

Salary due is payable within one year. This is company’s obligation towards employees. So, it is a current liability

Thus, salaries payable is a current liability.