On January 1, 2020, Ermler Company, a calendar-year company, issued $2,000,000 of notes payable, of which $500,000 is due on January 1 for each of the next four years.The proper balance sheet presentation on December 31, 2020, is
A)Current liabilities, $2,000,000.
B)Long-term debt , $2,000,000.
C)Current liabilities, $500,000; Long-term Debt, $1,000,000.
D)Current liabilities, $500,000; Long-term Debt, $1,500,000.

Question

Quizplus · Accepted Answer

On December 31, 2020, $500,000 is due within the next year, making it a current liability, while the remaining $1,500,000 is due in subsequent years, classifying it as long-term debt.

On January 1, 2020, Ermler Company, a Calendar-Year Company, Issued