Question: 1) List and discuss 3 types of Current liabilities and 3 types of Long-term Liabilities; and
2) A company, Toastyo Inc has liabilities but is a new company and is not sure how to categorize the liabilities and their implications. Please help them by determining the type of liability and providing them an explanation of why it is categorized as that specific type of liability:
1) We owe 20,000.00 in for services provided by Tonka and have to pay the company within on net terms 2/10, net 30.
2) We owe 1,000,052.34 as a loan to Johnson, Inc with a 5 year note payable and we pay each month.
3) We owe 5,000.00 in taxes to the State of Texas.
5) We owe 5,555.23 for an investment of 1,000,000.00 in interest that has accrued to the Bank of Garden.
Discuss the implications of each of the liabilities in terms of how it affects the short term and long term of the business.