On January 1, 2010, Howard 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 balance sheet presentation on December 31, 2010, is

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The notes payable of $600,000 are split into two parts: $150,000 due within the next year and $450,000 due after the next year. Therefore, $150,000 should be classified as current liabilities and $450,000 should be classified as long-term debt.

On January 1, 2010, Howard Company, a Calendar-Year Company, Issued