On March 1,2018,Barker Services Issued a 5% Long-Term Notes Payable

question 77

Multiple Choice

On March 1,2018,Barker Services issued a 5% long-term notes payable for $21,000.It is payable over a 3-year term in $7000 annual principal payments on March 1 of each year plus interest,beginning March 1,2019.How will the notes payable be shown on the balance sheet dated December 31,2018?

• A) $21,000 shown as current liability only
• B) $7000 shown as current liability and $21,000 shown as long-term liability
• C) $7000 shown as current liability and $14,000 shown as long-term liability
• D) the entire $21,000 shown as long-term liability

---

Definitions:

Hawthorne Studies

A series of studies conducted in the early 20th century focusing on worker productivity, leading to insights on the importance of social relations and worker attention.

Compensation

Payment or benefits provided to employees in exchange for their labor or services.

Hawthorne Studies

A series of experiments conducted to examine how different conditions affect worker productivity, highlighting the importance of social relations and worker satisfaction.

McGregor's Theory

A concept of human motivation, management, and leadership that divides workers' motivations into two categories, Theory X and Theory Y.