Question

Indicate (by letter) the way each of the items listed below should be reported in a balance sheet at December 31, 20x6. (Type your answers in order in capital letters. For example: NNCLDLC)

Reporting method: N (Not Reported), C (Current Liability), L (Long-term Liability), D (Disclosure note only)

1. Customer advances

2. Non-committed line of credit (A line of credit that has not yet be borrowed against)

3. Commercial paper

4. Note due June 9, 20x7

5. Accounts payable

6. Interest accrued on note, December 31, 20x6

7. Short-term bank loan to be paid with proceeds of sale of common stock

Answer 1

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1. Customer advances	C (Current Liability)
2. Non-committed line of credit (A line of credit that has not yet be borrowed against)	D (Disclosure note only)
3. Commercial paper	L (Long-term Liability)
4. Note due June 9, 20x7	C (Current Liability)
5. Accounts payable	C (Current Liability)
6. Interest accrued on note, December 31, 20x6	C (Current Liability)
7. Short-term bank loan to be paid with proceeds of sale of common stock	C (Current Liability)