On January 1, 2015, Howard Company, a Calendar-Year Company, Issued

On January 1, 2015, Howard Company, a calendar-year company, issued $900,000 of notes payable, of which $225,000 is due on January 1 for each of the next four years. The proper balance sheet presentation on December 31, 2015, is

A) Current Liabilities, $900,000.
B) Long-term Debt, $900,000.
C) Current Liabilities, $450,000; Long-term Debt, $450,000.
D) Current Liabilities, $225,000; Long-term Debt, $675,000.

Correct Answer:

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