Wednesday, July 7, 2010

BE 11-1 Cardinal Company Cardinal Company Cardinal Company has the following obligations at December 31

ACC 363

Axia College of University of Phoenix (UoP)

Financial Accounting
Weygandt, Kieso, and Kimmel, 5th Edition

Financial Accounting II

Brief Exercise 11-1 (BE 11-1) Cardinal Company has the following obligations at December 31: (a) a note payable for $100,000 due in 2 years, (b) a 10-year mortgage payable of $300,000 payable in ten $30,000 annual payments, (c) interest payable of $15,000 on the mortgage, and (d) accounts payable of $60,000. For each obligation, indicate whether it should be classified as a current liability.(Assume an operating cycle of less than one year.)

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