On December 1,2013,Fine Dining Products borrowed $80,000 on a 4%,8-year note with annual installment payments of $10,000 plus interest due on December 1 of each succeeding year.On December 1,the principal amount was initially recorded as a long-term note payable.What amount of the note payable will be shown as current portion of Long-Term Note Payable on the balance sheet as of December 31,2013?

Question

Quizplus · Accepted Answer

Since the first installment payment of $10,000 is due on December 1 of the following year, only a portion of the note payable will be due within the current year. Therefore, the current portion of the long-term note payable will be equal to the amount of the first installment payment, which is $10,000.

On December 1,2013,Fine Dining Products Borrowed $80,000 on a 4%,8-Year