On December 31, 2011, a company has a $500,000 15-year mortgage outstanding.Over the next year they will make 12 monthly payments of $5,000 representing $33,500 of interest and $26,500 of principal repayment.Which of the following best represents how the mortgage will be reported on the December 31, 2011 balance sheet? $\begin{array}{lll}&\text { Current liabilities}&\text { Long-term liabilities }\\hline
\text { a. } & \$ 26,500 & \$ 473,500 \
\text { b. } & \$ 26,500 & \$ 440,000 \
\text { c. } & \$ 60,000 & \$ 440,000 \
\text { d. } & \$ 60,000 & \$ 473,500
\end{array}$

Question

On December 31, 2011, a company has a $500,000 15-year mortgage outstanding.Over the next year they will make 12 monthly payments of $5,000 representing $33,500 of interest and $26,500 of principal repayment.Which of the following best represents how the mortgage will be reported on the December 31, 2011 balance sheet? $\begin{array}{lll}&\text { Current liabilities}&\text {  Long-term liabilities }\\hline
\text { a. } & \$ 26,500 & \$ 473,500 \
\text { b. } & \$ 26,500 & \$ 440,000 \
\text { c. } & \$ 60,000 & \$ 440,000 \
\text { d. } & \$ 60,000 & \$ 473,500
\end{array}$

Quizplus · Accepted Answer

The Answer of On December 31, 2011, a company has a $500,000 15-year mortgage outstanding.Over the next year they will make 12 monthly payments of $5,000 representing $33,500 of interest and $26,500 of principal repayment.Which of the following best represents how the mortgage will be reported on the December 31, 2011 balance sheet? $\begin{array}{lll}&\text { Current liabilities}&\text {  Long-term liabilities }\\hline
\text { a. } & \$ 26,500 & \$ 473,500 \
\text { b. } & \$ 26,500 & \$ 440,000 \
\text { c. } & \$ 60,000 & \$ 440,000 \
\text { d. } & \$ 60,000 & \$ 473,500
\end{array}$

On December 31, 2011, a Company Has a $500,000 15-Year