On January 1, 2014, Keisler Company, a calendar-year company, issued $700,000 of notes payable, of which $175,000 is due on January 1 for each of the next four years. The proper balance sheet presentation on December 31, 2014, is
A) Current liabilities, $700,000.
B) Long-term debt, $700,000.
C) Current liabilities, $175,000; Long-term Debt, $525,000.
D) Current liabilities, $525,000; Long-term Debt, $175,000.

Question

Quizplus · Accepted Answer

The portion of the notes payable due within one year ($175,000) is classified as a current liability, while the remaining balance ($525,000) is classified as long-term debt.

On January 1, 2014, Keisler Company, a Calendar-Year Company, Issued