On 1 March 2017,Vinnie Services issued a 6% long-term note payable for $20,000.It is payable over a 5-year term in $4000 annual principal payments on 1 March of each year plus interest,beginning 1 March 2018.How will this information be shown on the balance sheet dated 31 December 2017?
A)$20,000 shown as current liability only
B)$4000 shown as current liability;$16,000 shown as long-term liability
C)the entire $20,000 shown as long-term liability
D)$4000 shown as current liability;$20,000 shown as long-term liability

Question

Quizplus · Accepted Answer

The $4000 due within the next year is a current liability, while the remaining $16,000 is a long-term liability.

On 1 March 2017,Vinnie Services Issued a 6% Long-Term Note