Stardust Company Issued a Five-Year, Interest-Bearing Note Payable for $50,000

question 22

Multiple Choice

Stardust Company issued a five-year, interest-bearing note payable for $50,000 on January 1, 2019. Each January, Stardust is required to pay $10,000 principal on the note. What is the amount that will be reported on the current portion of long-term notes payable on the December 31, 2020 balance sheet?

• A)$10,000
• B)$0
• C)$30,000
• D)$20,000

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Definitions:

Operation

The day-to-day activities and procedures businesses employ to produce goods or services and function effectively.

Potential New Business

Opportunities or prospects that may lead to the inauguration or expansion of operations, representing potential sources of revenue or growth.

Worthwhile Investment

An investment that promises a good return for the amount of money or time put in.

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Professionals who assist in the buying and selling of businesses, ensuring the process adheres to legal and ethical standards.