On January 1 2021 Ermler Company a calendar-year company issued $2000000 of notes payable of which $500000 is due on January 1 for each of the next four years.The proper balance sheet presentation on December 31 2021 is

Question

Quizplus · Accepted Answer

The $500,000 due within the next year should be classified as a current liability, while the remaining $1,500,000 should be classified as long-term debt. Therefore, the proper balance sheet presentation on December 31, 2021, would be Current liabilities of $500,000 and Long-term debt of $1,500,000, for a total of $2,000,000.

On January 1 2021 Ermler Company a Calendar-Year Company Issued