On January 1, 2013, Osler Limited, a calendar-year company, issued $160,000 of notes payable, of which $40,000 is due on January 1 for each of the next four years. The proper balance sheet presentation on December 31, 2013, is

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The portion of the notes payable due within one year should be classified as current liabilities, which is $40,000. The remaining $120,000 should be classified as long-term debt as it is not due within one year. Therefore, the proper balance sheet presentation on December 31, 2013, is current liabilities of $40,000 and long-term debt of $120,000.

On January 1, 2013, Osler Limited, a Calendar-Year Company, Issued