You have been asked to review the december 31, 2016, balance sheet for champion cleaning. after completing your review, you list the following three items for discussion with your superior:
1.
an investment of $38,000 is included in current assets. management has indicated that it has no intention of liquidating the investment in 2017.
2.
a $180,000 note payable is listed as a long-term liability, but you have determined that the note is due in 10, equal annual installments with the first installment due on march 31, 2017.
3.
deferred revenue of $84,000 is included as a current liability even though only two-thirds will be earned in 2017, and the other one-third in 2018.
determine the appropriate amount and classification for each of these items. (if not entry is required for classification, choose "no entry".)
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worksheetlearning objective: 03-02 identify and describe the various balance sheet asset classifications.
difficulty: 2 mediumlearning objective: 03-03 identify and describe the two balance sheet liability classifications.