On January 1 2021 Keisler Company a calendar-year company issued $900000 of notes payable of which $225000 is due on January 1 for each of the next four years.The proper balance sheet presentation on December 31 2021 is

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The $225,000 payable for each of the next four years will be split between current and long-term liabilities based on the amount due within the current operating cycle, which is one year. Therefore, on December 31, 2021, $225,000 will be classified as a current liability and $675,000 will be classified as long-term debt. The remaining $900,000 will not be considered a current liability because it is not due within one year from the balance sheet date.

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