Ask Question
2 March, 20:18

Jamison Company has the following obligations at December 31: For each obligation, indicate whether it should be classified as a current liability. (Assume an operating cycle of less than one year.) a. A note payable for $100,000 due in 2 years. b. A 10-year mortgage payable of $300,000 payable in ten $30,000 annual payments. c. Interest payable of $15,000 on the mortgage. d. Accounts payable of $60,000.

+1
Answers (1)
  1. 2 March, 21:00
    0
    The current liability is that liability in which the obligation is arise for one year or less than one year.

    So, the categorization is shown below:

    a. A note payable for $100,000 due in 2 years. = It is not a current liability as it is due in 2 years that come under the long term liability

    b. A 10-year mortgage payable of $300,000 payable in ten $30,000 annual payments. = Current liability for first annual payment only and rest is consider to be long term liability

    c. Interest payable of $15,000 on the mortgage. = Current liability as it is arise within one year

    d. Accounts payable of $60,000. = Current liability as it is arise within one year

    The current liability is shown on the liabilities side of the balance sheet.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Jamison Company has the following obligations at December 31: For each obligation, indicate whether it should be classified as a current ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers