**Balance Sheet Classification**At the balance sheet date, a business owes a mortgage note payable of $648,000, the terms of which provide for monthly payments of $1,800.**How should the liability be classified on the balance sheet?**- Current liability: $ [ ]- Long-term liability: $ [ ]**Explanation:**To classify the liability, calculate the portion of the mortgage note payback that falls within the next 12 months, and record it as a current liability. The remaining balance should be classified as a long-term liability.

Current liability: Short-term debts or obligations due within a year, like loans or accounts…

Answered: At the balance sheet date, a business…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Subject : Accounting
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At the balance sheet date, a business owes a mortgage note payable of $648,000, the terms of which provide for monthly payments of $1,800. How should the liability be classified on the balance sheet? Current liability: $ Long-term liability: $