On 1 November 2013, EZ Products borrowed $48 000 on a 5%, 10- year note with annual instalment payments of $4 800 plus interest due on 1 November of each succeeding year. On 31 December 2014, what will the balance be in the account titled Current portion of long- term notes payable?
A)$4 800
B)$48 000
C)$400
D)$43 200

Question

Quizplus · Accepted Answer

The current portion of long-term notes payable is the amount due within the next year. The annual instalment payment is $4,800, which is the amount due in the next year.

On 1 November 2013, EZ Products Borrowed $48 000 on a 5