On March 1,2016,Baker Services issued a 9% long-term notes payable for $18,000.It is payable over a 3-year term in $6,000 annual principal payments on March 1 of each year plus interest,beginning March 1,2017.How will the notes payable be shown on the balance sheet dated December 31,2016?
A)$18,000 shown as current liability only
B)$6,000 shown as current liability and $18,000 shown as long-term liability
C)$6,000 shown as current liability and $12,000 shown as long-term liability
D)the entire $18,000 shown as long-term liability

Question

Quizplus · Accepted Answer

The $6,000 due within the next year is shown as a current liability, and the remaining $12,000 is shown as a long-term liability.

On March 1,2016,Baker Services Issued a 9% Long-Term Notes Payable