On December 31,2014,a note payable of $200,000 has installments of $50,000 due yearly,beginning on December 31,2015.On December 31,2014,how will the note payable be reported on the balance sheet?
A)$50,000 current liability and $100,000 long-term liability
B)$200,000 long-term liability
C)$200,000 current liability
D)$50,000 current liability and $150,000 long-term liability

Question

Quizplus · Accepted Answer

The $50,000 due within one year is a current liability, and the remaining $150,000 is a long-term liability.

On December 31,2014,a Note Payable of $200,000 Has Installments of $50,000