At the beginning of the first quarter, your company borrows $33,500 for four years at 10% interest and has to repay $6,700 of principal each year. Interest is paid at the end of the second and fourth quarters, and the principal is due at the end of the year. How would this information be reported on the balance sheet at the end of the first quarter?

$837.50 as interest payable, $6,700 as current portion of long-term debt under current liabilities, and $26,800 under long-term debt.

$3,350 of interest under current liabilities, $6,700 as current portion of long-term debt under current liabilities and $26,800 under long-term debt.

$837.50 as interest payable under current liabilities and $33,500 under long-term debt.

$837.50 as interest expense and $33,500 under long-term debt.