The adjusted trial balance for Ray Corporation at July 31, 2014 the corporation's fiscal year-end, contained the following:
Accounts payable......................$ 96,000...................Note payable..............$140,000
Accounts receivable....................112,000..................Lease liability.................65,000
Bonds payable, due 2018..............205,000 Note receivable, due December 2014......35,000
Interest payable............................5,000.............Unearned revenue,,,,,,,,,,,,,,,,,,,,,10,000
Of the lease liability amount, $16,250 is due within the next year. Total payments on the note payable in the fiscal year 2015 will be $27,000: $7,000 is for interest and $20,000 for principal repayments.
Instructions
(a) Prepare the non-current liabilities section of the balance sheet as at July 31, 2014.
(b) Some of the accounts above belong in the balance sheet but not in its non-current liabilities section. What is the correct classification for them?