Presented below are three receivables transactions. Indicate whether these receivables are reported as accounts receivable, notes receivable, or other receivables on a balance sheet.
| Sold merchandise on account for $64,000 to a customer.
| Received a promissory note of $57,000 for services performed.
| Advanced $10,000 to an employee.a. accounts receivableb. notes receivablec. other receivables
The following expenditures were incurred by Obermeyer Company in purchasing land: cash price $70,000, accrued taxes $3,000, attorneys' fees $2,500, real estate broker's commission $2,000, and clearing and grading $3,500. What is the cost of the land?
Determine the cost of land.
Neeley Company incurs the following expenditures in purchasing a truck: cash price $30,000, accident insurance $2,000, sales taxes $1,500, motor vehicle license $100, and painting and lettering $400. What is the cost of the truck?
Determine the cost of a truck.
Buffaloe 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.)
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
D. Accounts payable of $60,000.
C. CURRENT LIABILITY
D. CURRENT LIABILITY
Identify whether obligations are current liabilities.
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