Keller Company issued a five-year interest-bearing note payable for $300000 on January 1 2021.Each January the company is required to pay $60000 on the note.How will this note be reported on the December 31 2022 balance sheet?

Question

Quizplus · Accepted Answer

The note is a long-term debt because it has a maturity of more than one year. The balance of the note payable on December 31, 2022, is $180,000 ($300,000 - $60,000 x 2). The current portion of the note payable is $60,000.

Keller Company Issued a Five-Year Interest-Bearing Note Payable for $300000