Determine the appropriate classification for each items

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Reference no: EM131934129

Question: 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 $45,000 is included in current assets. Management has indicated that it has no intention of liquidating the investment in 2017.

2. A $250,000 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 $105,000 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

Reference no: EM131934129

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