On January 1, 2010, Howard Company, a Calendar-Year Company, Issued

question 92

Multiple Choice

On January 1, 2010, Howard Company, a calendar-year company, issued $600,000 of notes payable, of which $150,000 is due on January 1 for each of the next four years. The proper balance sheet presentation on December 31, 2010, is

• A) Current Liabilities, $600,000.
• B) Long-term Debt, $600,000.
• C) Current Liabilities, $300,000; Long-term Debt, $300,000.
• D) Current Liabilities, $150,000; Long-term Debt, $450,000.