On 1 December 2016,Fine Products borrowed $96,000 on a 8%,8-year note with annual instalment payments of $12,000.00 plus interest due on 1 December of each succeeding year.On 1 December,the principal amount was initially recorded as Long-term notes payable.What amount of the note payable will be shown as current portion of Long-term notes payable on the balance sheet as of 31 December 2016?
A)$12,000.00
B)$7680.00
C)$24,000.00
D)$19,680.00

Question

Quizplus · Accepted Answer

Since the annual instalment payments are $12,000.00 each, the current portion of Long-term notes payable on the balance sheet as of 31 December 2016 will also be $12,000.00.

On 1 December 2016,Fine Products Borrowed $96,000 on a 8%,8-Year