Select the correct reporting method for each of the items listed below:

1. _____ Current portion of long-term debt.

2. _____ Bond payable.

3. _____ Restaurant gift cards (expires within a year of issuance).

4. _____ Note payable due in thirteen months.

5. _____ A contingent liability with a reasonably possible likelihood of occurring within the next year and cannot be estimated.

Use the following to answer questions 6 10

On October 1^st, FLY Tech, an Airline maintenance company, borrows $1,000,000 cash from Bank of America to expand operations. FLY signs a 1 year, 4% promissory note. FLYs year-end is December 31.

6. How was the loan classified on the companys December 31, year 1 balance sheet?

A. Current liability

B. Long term liability

C. Note disclosure only

D. Stockholders Equity

7. How was the loan classified on the companys December 31, year 1 statement of cash flow?

A. Operating activity

B. Investing activity

C. Financing activity

D. Not shown on the statement of cash flows

8. $_________ How much interest should be accrued on December 31 of the first year (assume no previous entry was recorded for interest on the loan)?

9. $______________When the note is paid at maturity (September 30, year 2) how much cash is paid to Bank of America?

10. $_________ When the note is paid at maturity in the second accounting year, how much does net income decrease?