Exercise 9-1 Classifying liabilities LO CI The following items appear on the balance sheet of a company with a one-year operating cycle. Identify the proper classification of each item as follows: C if it is a current liability, L if it is a long-term liability, or N if it is not a liability. Classification Item 1. Wages payable. 2. FICA-Medicare Taxes Payable 3. Machinery (expected life of 4 years) 4. Salaries payable. 5. Warranty liability (6 months of coverage) 6. FICA-Social Security Taxes Payable 7. Employee Union Dues Payable 8. Interest payable (due in 90 days) 9. Employee Federal Income Taxes Payable 10. Notes payable (mature in five years)