Muffin Company Issued a Five-Year, Interest-Bearing Note Payable for $50,000

Muffin Company issued a five-year, interest-bearing note payable for $50,000 on January 1, 2014. Each January the company is required to pay $10,000 on the note. How will this note be reported on the December 31, 2015 balance sheet?

A) Long-term debt, $50,000
B) Long-term debt, $40,000
C) Long-term debt, $30,000; Long-term debt due within one year, $10,000
D) Long-term debt of $40,000; Long-term debt due within one year, $10,000

Correct Answer:

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