On January 1, 2022, Junction Limited, a calendar-year company, issued $160,000 of notes payable, of which $65,000 is due on January 1 for each of the next four years.The proper statement of financial position presentation on December 31, 2022, is
A)Current Liabilities, $160,000.
B)Non-current Liabilities, $160,000.
C)Current Liabilities, $65,000; Non-current Liabilities, $95,000.
D)Current Liabilities, $95,000; Non-current Liabilities, $65,000.

Question

Quizplus · Accepted Answer

The correct presentation is Current Liabilities, $65,000; Non-current Liabilities, $95,000. This is because $65,000 of the notes payable is due within the next year (making it a current liability), and the remaining $95,000 is due beyond one year (making it a non-current liability).

On January 1, 2022, Junction Limited, a Calendar-Year Company, Issued