Instructions:.

(a) Define the concept of liabilities and explain the difference between current and long-term liabilities. 

(b) Prepare a listing of the Berger Corporation's current and long-term liabilities as they should be presented in the company's December 31, 2020 balance sheet. 

(c) Explain why you have excluded any of the listed items in your listing of current and long-term liabilities.

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As of December 31, 2020, Berger Corporation has prepared the following information regarding its liabilities and other obligations. 20-year bond issue that matures in one year €800,000 Accrued interest on the 20-year bond issue as of the balance sheet date C68,000 Notes payable, of which C40,000 will be repaid within the next 12 months C200,000 Interest expense that will result from existing liabilities over the next 12 months c92,000 Cash deposits from customers for goods and services to be delivered over the next four months C310,000 Three-year commitment to Joan Sanchez as chief operating officer at a salary of C150,000 per year €450,000 Note payable due within 90 days (but that is approved to be extended for an additional 12 months) (190,000 Income taxes, of which €195,000 are currently payable and the remainder deferred indefinitely C375,000 Lawsuit pending against Berger, in which €500,000 is claimed in damages. Legal counsel can make no reasonable estimate of the company's ultimate liability at this time. As of December 31, 2020, Berger Corporation has prepared the following information regarding its liabilities and other obligations. 20-year bond issue that matures in one year €800,000 Accrued interest on the 20-year bond issue as of the balance sheet date C68,000 Notes payable, of which C40,000 will be repaid within the next 12 months C200,000 Interest expense that will result from existing liabilities over the next 12 months c92,000 Cash deposits from customers for goods and services to be delivered over the next four months C310,000 Three-year commitment to Joan Sanchez as chief operating officer at a salary of C150,000 per year €450,000 Note payable due within 90 days (but that is approved to be extended for an additional 12 months) (190,000 Income taxes, of which €195,000 are currently payable and the remainder deferred indefinitely C375,000 Lawsuit pending against Berger, in which €500,000 is claimed in damages. Legal counsel can make no reasonable estimate of the company's ultimate liability at this time.

Answer rating: 100% (QA)

answer a Current liabilities are recorded in the balance sheet in the order of their due dates On the other hand longterm liabilities are payables tha... View the full answer