14

On January 1, 2014, Ermler Company, a calendar-year company, issued $1,000,000 of notes payable, of which $250,000 is due on January 1 for each of the next four years. The proper balance sheet presentation on December 31, 2014, is

Select one:

a. Current liabilities, $250,000; Long-term Debt, $750,000.

b. Current liabilities, $1,000,000.

c. Long-term debt , $1,000,000

d. Current liabilities, $500,000; Long-term Debt, $500,000