On January 2,2014,Lionel 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 31,2014,is

Question

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The $10,000 due within the next year should be classified as current liabilities, while the remaining $30,000 is a long-term liability. Therefore, the proper balance sheet presentation is Current Liabilities of $10,000 and Long-Term Liabilities of $30,000.

On January 2,2014,Lionel Company Issued $40,000 of Notes Payable,of Which