On July 1,2013,Avery Services issued a 4% long-term note payable for $10,000.It is payable over a 5-year term in $2,000 principal installments on July 1 of each year.Each yearly installment will include both principal repayment of $2,000 and interest payment for the preceding one-year period.On July 1,2014,after the first installment payment is made,Avery will have to reclassify an additional $2,000 from long-term notes payable to the current portion of long-term notes payable.

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The Answer of On July 1,2013,Avery Services issued a 4% long-term note payable for $10,000.It is payable over a 5-year term in $2,000 principal installments on July 1 of each year.Each yearly installment will include both principal repayment of $2,000 and interest payment for the preceding one-year period.On July 1,2014,after the first installment payment is made,Avery will have to reclassify an additional $2,000 from long-term notes payable to the current portion of long-term notes payable.

On July 1,2013,Avery Services Issued a 4% Long-Term Note Payable