Time Remaining: 00.30 09 Submt Test uusuoH: T pt 30 of 41 (30 complele) This Tes

Question

Time Remaining: 00.30 09 Submt Test uusuoH: T pt 30 of 41 (30 complele) This Test: 41 pls installment note on December 1, 2016. The note requires quarterly payments of $500 phs interest on March 1, June 1, September 1, and December 1 of each year. How will Tazo classity this loan on its December 31, 2016 Balance Sheet? O A. Current Portion of Long-term debt, $1,000, Long term debt, $29,000 O B. Current Portion of Long-term debt, $1,500, Long-term debt $28500 ° C. Current Portion of Long term debt, $500. Long-term debt, s29500 ? D. Current Portion of Long-term debt, S2.000. Long-term debt, S28 00? Click to select your answer O Type here to search

Explanation / Answer

Quarterly payment = 500

So in one year payment = 500*4 = 2000

So total notes payable = 2000

Current portion = 2000

Long term note payable = 30000-2000 = 28000

So answer is d) Current portion of long term debt $2000; Long term debt $28000

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.