On March 1, 2015, Vinnie Services Issued a 5% Long-Term

On March 1, 2015, Vinnie Services issued a 5% long-term notes payable for $15,000. It is payable over a 3-year term in $5,000 annual principal payments on March 1 of each year plus interest, beginning March 1, 2016. How will this information be shown on the balance sheet dated December 31, 2015?

A) $15,000 shown as current liability only
B) $5,000 shown as current liability; $15,000 shown as long-term liability
C) $5,000 shown as current liability; $10,000 shown as long-term liability
D) the entire $15,000 shown as long-term liability

Correct Answer:

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