Larkspur, Inc.reports the following liabilities (in thousands) on its December 31, 2022, balance sheet and notes to the financial statements.
Accounts payable
$4,883 Mortgage payable
$7,281
Unearned rent revenue
1,324 Notes payable (due in 2025)
436
Bonds payable
2,943 Salaries and wages payable
642
Current portion of mortgage payable
2,218 Notes payable (due in 2023)
3,555
Income taxes payable
281 Warranty liability—current
1,917
Identify which of the above liabilities are likely current and which are likely long-term. List any items that do not fit in either category. Identify the reasoning for your selection.
Account
Classification
Reason
Accounts payable
Unearned rent revenue
Bonds payable
Current portion of mortgage payable
Income taxes payable
Mortgage payable
Notes payable (due in 2025)
Salaries and wages payable
Notes payable (due in 2023)
Warranty liability—current