On March 1, 2015, Vinnie Services Issued a 5% Long-Term

question 114

Multiple Choice

On March 1, 2015, Vinnie Services issued a 5% long-term notes payable for $15,000. It is payable over a 3-year term in $5,000 annual principal payments on March 1 of each year plus interest, beginning March 1, 2016. How will this information be shown on the balance sheet dated December 31, 2015?

• A)$15,000 shown as current liability only
• B)$5,000 shown as current liability; $15,000 shown as long-term liability
• C)$5,000 shown as current liability; $10,000 shown as long-term liability
• D)the entire $15,000 shown as long-term liability

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