Answer:
a. Contra Liability and expense account
b. Long-term liability
c. Long-term and current liability
d. current liability
e. Long-term liability
f. Current asset
g. Current liability
h. current liability
i. current liability
Explanation:
Req. A, B and C
<em>A.</em> Contra liability is a credit liability account for that has an explicit debit liability account. In that case, unamortized premium on bonds payable is a liability for which there is a premium, which is a debit liability. $3,000 is an expense, so it is an expense account.
<em>B.</em> Since the current year is 2017 and the maturity date is 2021, it is a long-term liability.
<em>C.</em> As $200,000 will be matured at the end of the year, it is a current liability. $800,000 is a long-term liability.
Req. D, E and F
<em>D.</em> Due to income tax purpose, employees' wages will be withhold for a specific time, it is a current liability.
<em>E(1,2).</em> Since the notes payable will be matured in 2020, it is a long-term liability. (as operating cycle is more than one year, it is a long-term liability. Whatever assets are used, they are long-term liabilities.
<em>F.</em> Accounts receivable is a current asset account. Therefore, if the balance is credit due to returns, it will not change the account.
Req. G, H and I
G. Since the bonds payable is matured at the end of this period, the entire amount will be current liability.
H. Bank Overdraft is a current liability account whatever the scenario pretends.
I. Since customers paid and goods have not been provided to them, it is a liability for the company. As it is related to products, it is a current liability.
