On December 31, 2015, Peligrino Co. has a long term note payable of $800,000. Of that balance, $100,000 will be paid within one year from the balance sheet date. How much of the note payable should Peligrino Co. report as a non-current liability when theyprepare the December 31, 2015 balance sheet?

Question

Quizplus · Accepted Answer

Peligrino Co. should report $700,000 as a non-current liability because $100,000 of the $800,000 note payable is due within one year and should be classified as a current liability.