The following items are accounts on Smith's balance sheet of December 31, 2017: Taxes Payable Accounts Receivable

Question:

The following items are accounts on Smith's balance sheet of December 31, 2017:

Taxes Payable

Accounts Receivable

Notes Payable, 9%, due in 90 days

Investment in Bonds

Capital Stock

Accounts Payable

Estimated Warranty Payable in 2018

Retained Earnings

Trademark

Mortgage Payable ($10,000 due every year until 2030)

Required

Identify which of the accounts should be classified as a current liability on Smith's balance sheet. For each item that is not a current liability, indicate the category of the balance sheet in which it would be classified. Assume the company has the following balance sheet categories: current asset; property, plant, and equipment; long-term investment; intangible asset; current liability; long-term liability; and stockholders' equity.

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...