Cardinal Company has the following obligations at December 31: (a) A note payable for $100,000 due in
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(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 $12,000 on the mortgage,
(d) Accounts payable of $60,000. For each obligation, indicate whether it should be classified as a current liability. (Assume an operating cycle of less than one year.)
Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive...
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a A note payable due in two years is a longterm liability not a current liability b 30...View the full answer
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Related Book For 
Financial and managerial accounting
ISBN: 978-1118016114
1st edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
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