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Help I S NEXT Exercise 10-15 Kingbird, Inc, reports the following liabilities (i

ID: 2336738 • Letter: H

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

Explanation / Answer

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

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