Exercise 10-1 Classifying liabilities LO1

The following items appear on the balance sheet of Crunched Auto Body Repair Shop, which has a 12-month operating cycle. Identify the proper classification of each item. In the space beside each item write a C if it is a current liability, an L if it is a non-current liability, or an N if it is not a liability.

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.