On January 2,2010,Lester Company,a calendar-year company,issued $40,000 of notes payable,of which $10,000 is due on January 2 for each of the next four years.The proper balance sheet presentation on December 31,2010,is

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The $10,000 due within the next year should be listed as a current liability, and the remaining $30,000 should be listed as a long-term liability. Therefore, the proper balance sheet presentation on December 31, 2010, is current liabilities of $10,000 and long-term liabilities of $30,000, for a total of $40,000.

On January 2,2010,Lester Company,a Calendar-Year Company,issued $40,000 of Notes Payable,of