On January 1, 20X3, Osler Limited, a calendar-year company, issued $160,000 of notes payable, of which $40,000 is due on January 1 for each of the next four years. The proper balance sheet presentation on December 31, 20X3, is
A) Current Liabilities, $160,000.
B) Long-term Debt, $160,000.
C) Current Liabilities, $40,000; Long-term Debt, $120,000.
D) Current Liabilities, $120,000; Long-term Debt, $40,000.

Question

Quizplus · Accepted Answer

The correct balance sheet presentation would include $40,000 under Current Liabilities, representing the portion of the notes payable due within the next year, and $120,000 under Long-term Debt, representing the portion due beyond one year.

On January 1, 20X3, Osler Limited, a Calendar-Year Company, Issued