Hilton Company Issued a Four-Year Interest-Bearing Note Payable for $600,000

Hilton Company issued a four-year interest-bearing note payable for $600,000 on January 1, 2017. Each January the company is required to pay $150,000 on the note. How will this note be reported on the December 31, 2018 balance sheet?

A) Long-term debt, $600,000.
B) Long-term debt, $450,000.
C) Long-term debt, $300,000; Long-term debt due within one year, $150,000.
D) Long-term debt, $450,000; Long-term debt due within one year, $150,000.

Correct Answer:

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