Presented below are various account balances of KD Lang Inc

Presented below are various account balances of K.D. Lang Inc..

Indicate whether each of the items below should be classified on December 31, 2017, as a current liability, a long-term liability, or under some other classification. Consider each one independently from all others; that is, do not assume that all of them relate to one particular business.

				Classification
(a)		Unamortized premium on bonds payable, of which $3,000 will be amortized during the next year.		Current LiabilityLong-term LiabilityCurrent and Long-term Liability
(b)		Bank loans payable of a winery, due March 10, 2021. (The product requires aging for 5 years before sale. Current assets are used to satisfy the debt.)		Current LiabilityLong-term LiabilityCurrent and Long-term Liability
(c)		Serial bonds payable, $1,000,000, of which $200,000 are due each July 31.		Current LiabilityLong-term LiabilityCurrent and Long-term Liability
(d)		Amounts withheld from employees\' wages for income taxes.		Current LiabilityLong-term LiabilityCurrent and Long-term Liability
(e1)		Notes payable due January 15, 2020. (operating cycle is greater than one year and current assets are used)		Current LiabilityCurrent and Long-term LiabilityNoncurrent Liability
(e2)		Notes payable due January 15, 2020. (otherwise)		Current LiabilityCurrent and Long-term LiabilityNoncurrent Liability
(f)		Credit balances in customers\' accounts arising from returns and allowances after collection in full of account.		Current LiabilityLong-term LiabilityCurrent and Long-term Liability
(g)		Bonds payable of $2,000,000 maturing June 30, 2018.		Current LiabilityLong-term LiabilityCurrent and Long-term Liability
(h)		Overdraft of $1,000 in a bank account. (No other balances are carried at this bank.)		Current LiabilityLong-term LiabilityCurrent and Long-term Liability
(i)		Deposits made by customers who have ordered goods.		Current LiabilityLong-term LiabilityCurrent and Long-term Liability

Solution

a) Unamortized premium on bonds payable, of which $3,000 will be amortized during the next year. Long Term Liability b) Bank loans payable of a winery, due March 10, 2021. (The product requires aging for 5 years before sale. Current assets are used to satisfy the debt.) Long Term Liability c) Serial bonds payable, $1,000,000, of which $200,000 are due each July 31. Long Term Liability D) Amounts withheld from employees\' wages for income taxes Cuurent Liability E1 Notes payable due January 15, 2020. (operating cycle is greater than one year and current assets are used) Long Term Liability E2 Notes payable due January 15, 2020. (otherwise) Long Term Liability f Credit balances in customers\' accounts arising from returns and allowances after collection in full of account. Under Some other Classification g Bonds payable of $2,000,000 maturing June 30, 2018. Cuurent Liability h Overdraft of $1,000 in a bank account. (No other balances are carried at this bank.) Cuurent Liability i Deposits made by customers who have ordered goods Under Some other Classification