On March 1, 2015, Vinnie Services issued a 5% long-term notes payable for $15,000. It is payable over a 3-year term in $5,000 annual principal payments on March 1 of each year plus interest, beginning March 1, 2016. How will this information be shown on the balance sheet dated December 31, 2015?
A)$15,000 shown as current liability only
B)$5,000 shown as current liability; $15,000 shown as long-term liability
C)$5,000 shown as current liability; $10,000 shown as long-term liability
D)the entire $15,000 shown as long-term liability

Question

Quizplus · Accepted Answer

As of December 31, 2015, the $5,000 principal payment due on March 1, 2016, is a current liability, while the remaining $10,000 is a long-term liability.

On March 1, 2015, Vinnie Services Issued a 5% Long-Term