On 1 November 2013, EZ Products Borrowed $48 000 on a 5

question 51

Multiple Choice

On 1 November 2013, EZ Products borrowed $48 000 on a 5%, 10- year note with annual instalment payments of $4 800 plus interest due on 1 November of each succeeding year. How will the note be shown on the balance sheet dated 31 December 2013?

• A)$4 800 shown as current liability, $48 000 shown as non- current liability
• B)$48 000 shown as current liability only
• C)Entire $48 000 shown as non- current liability
• D)$4 800 shown as current liability, $43 200 shown as non- current liability