The following items are accounts on Smiths balance sheet of December 31, 2010: Taxes Payable Accounts Receivable

Question:

The following items are accounts on Smith’s of December 31, 2010:
Taxes Payable
Accounts Receivable
Notes Payable, 9%, due in 90 days
Investment in Bonds
Capital Stock
Accounts Payable
Estimated Warranty Payable in 2011
Retained Earnings
Trademark
Mortgage Payable ($10,000 due every year until 2027)

Required
Identify which of the accounts should be classified as a current liability on Smith’s For each item that is not a current liability, indicate the category of the in which it would be classified.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...