Question
As I was doing homework I got these 2 questions that are very similar but their answers are different. Why is that? On January 1,
As I was doing homework I got these 2 questions that are very similar but their answers are different. Why is that?
On January 1, 2017, Discipline Company, a calendar-year company, issued $800,000 of notes payable, of which $200,000 is due on January 1 for each of the next four years. The proper balance sheet presentation on December 31, 2017, is
Current liabilities, $800,000.
On January 1, 2017, Bolton Company, a calendar-year company, issued $1,000,000 of notes payable, of which $200,000 is due on January 1 for each of the next five years. The proper balance sheet presentation on December 31, 2017, is
Current liabilities, $200,000; Long-term debt, $800,000.
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