Homework (Week 2)
E13-1
Balance Sheet Classification of Various Liabilities
How would each of the following items be reported on the balance sheet?
(a) Accrued vacation pay
Current liability
(b) Estimated taxes payable.
Current liability
(c) Service warranties on appliance sales
Current liability or long-term liability depending on term of warranty
(d) Bank overdraft.
Current liability
(e) Personal injury claim pending be paid from current assets
Footnote disclosure (assume not probable and/or not reasonably estimable)
(f) Unpaid bonus to officers
Current liability
(g) Deposit received from customer to guarantee
Current or noncurrent liability depending upon the time involved
(h) Sales taxes payable
Current liability
(i) Gift certificates sold to customers but not yet redeemed.
Current liability
(j) Premium offers outstanding.
Current liability
(k) Discount on notes payable
Current liabilities or long-term liabilities as a deduction from face value of note
(l) Employee payroll deductions unremitted
Current liability
(m) Current maturities of long-term debts to
Current liability
(n) Cash dividends declared but unpaid
Current liability
(o) Dividends in arrears on preferred stock performance of a contract.
Footnote disclosure
(p) Loans from officers
Separate presentation in either current or long-term liability section