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:

Insight

An ability to know what information is relevant, to find connections between the old and the new, to combine facts that are unrelated, and to see the “big picture”

Flow Experience

A state of complete immersion and engagement in an activity, often leading to enhanced performance and personal fulfillment.

Response to Loss

The reactions or actions taken by an individual, group, or organization after experiencing a defeat or failure.

Lawyer Role

The professional responsibilities and duties of a lawyer, including representing clients in legal matters, providing legal advice, and upholding the law.