On January 1, 2014, Donahue Company, a calendar-year company, issued $600,000 of notes payable, of which $150,000 is due on January 1 for each of the next four years. The proper statement of financial position presentation on December 31, 2014, is

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The portion of the notes payable that is due within one year (January 1, 2015) should be classified as current liabilities ($150,000). The remaining $450,000 is due after one year and should be classified as non-current liabilities. Therefore, the proper statement of financial position presentation on December 31, 2014, is Current Liabilities, $150,000; Non-current Liabilities, $450,000.

On January 1, 2014, Donahue Company, a Calendar-Year Company, Issued