Hilton Company issued a four-year interest-bearing note payable for $600,000 on January 1, 2014. Each January the company is required to pay $150,000 on the note. How will this note be reported on the December 31, 2015 balance sheet?

Question

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By December 31, 2015, two payments of $150,000 each would have been made, reducing the long-term debt to $300,000. The next $150,000 payment due within one year is classified separately as "Long-term debt due within one year."

Hilton Company Issued a Four-Year Interest-Bearing Note Payable for $600,000