Questions: TB Problem Qu. 11-226 (Algo) Classifying Liabilities For each item determine whether it is reported as a current liability, long-term liability, or not a liability, on the balance sheet of a company with a one-year operating cycle. Item Classification 1. Notes payable (due in 200 days). 2. Sales taxes payable. 3. Employee Medical Insurance Payable 4. Pension liability (to be paid to employees retiring in 2 to 5 years) 5. Notes payable (due in 6 to 11 months). 6. Machinery (expected life of 4 years) 7. FICA-Social Security Taxes Payable 8. Employee Union Dues Payable 9. FICA-Medicare Taxes Payable 10. Bonus payable (to be paid in 60 days)
Transcript text: TB Problem Qu. 11-226 (Algo) Classifying Liabilities
For each item determine whether it is reported as a current liability, long-term liability, or not a liability, on the balance sheet of a company with a one-year operating cycle.
\begin{tabular}{|l|l|}
\hline Item & \multicolumn{1}{c|}{ Classification } \\
\hline 1. Notes payable (due in 200 days). & \\
\hline 2. Sales taxes payable. & \\
\hline 3. Employee Medical Insurance Payable & \\
\hline 4. Pension liability (to be paid to employees retiring in 2 to 5 years) & \\
\hline 5. Notes payable (due in 6 to 11 months). & \\
\hline 6. Machinery (expected life of 4 years) & \\
\hline 7. FICA-Social Security Taxes Payable & \\
\hline 8. Employee Union Dues Payable & \\
\hline 9. FICA-Medicare Taxes Payable & \\
\hline 10. Bonus payable (to be paid in 60 days) & \\
\hline
\end{tabular}
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