On January 1, 2014, Howard Company, a calendar-year company, issued $1,000,000 of notes payable, of which $250,000 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 due within one year from the statement of financial position date is considered a current liability. The remaining portion is a non-current liability. Therefore, $250,000 is classified as current liabilities ($250,000 due within one year) and the remaining $750,000 is classified as non-current liabilities ($750,000 due beyond one year).

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