Question

Help I S NEXT Exercise 10-15 Kingbird, Inc, reports the following liabilities (in thousands) on its January 31, 2017, balance sheet and notes to the financial statements. Accounts payable Accrued pension liability Unearned rent revenue Bonds payable Current portion of mortgage payable Income taxes payable $4,264.0 Mortgage payable 1,216.0 Operating leases 1,259.0 Notes payable (due in 2020) 1,962.0 Salaries and wages payable 1,993.0 Notes payable (due in 2018) $6,747.0 1,642.0 336.0 559.0 Unused operating line of credit Warranty liability -current 2,564.0 3,338.0 1,818.0 236.0 Your answer is correct. Identify which of the above liabilities are likely current and which are likely long-term. Account Classification Accounts payable Current Liabilit Accrued nensinn l

Answer 1

Answer:

1

Account	Classification
Accounts payable	Current liability
Accrued pension liability	Long-term liability
Unearned rent revenue	Current liability
Bonds payable	Long-term liability
Current portion of mortgage payable	Current liability
Income taxes payable	Current liability
Mortgage payable	Long-term liability
Operating leases	N/A
Notes payable	Long-term liability
(due in 2020)
Salaries and wages payable	Current liability
Notes payable (due in 2018)	Current liability
Unused operating line of credit	N/A
Warranty liability—current	Current liability

2

KING BIRD INC.
Balance Sheet (Partial)
31-Jan-17
(in thousands)
Current liabilities
Notes payable	$2,564.00
Accounts payable	4,264.00
Current portion of mortgage payable	1,993.00
Warranty liability	1,818.00
Unearned rent revenue	1,259.00
Salaries and wages payable	559
Income taxes payable	236
Total current liabilities		$12,693.00
Long-term liabilities
Mortgage payable	$6,747.00
Bonds payable	1,962.00
Accrued pension liability	1,216.00
Notes payable	336
Total long-term liabilities		10,261.00
Total liabilities		$22,954.00