Answer:
Explanation:
The loan will be reported in the December 31, 2019 and 2018, balance sheets, is shown below:-
Balance sheet(Partial)
As of December 31
2016 2015
Current liabilities
Current portion of long term debt $3,000 $2,000
Long term liabilities
Long term debt $10,000 $13,000
Total liabilities $13,000 $15,000
On December 2018 we represent the current liability of $2,000 loan because of year 31 December 2019 within of one year and the left portion of the loan represent as long term liability because it is not within one year from the balance sheet.
On December 2019 Loan remains outstanding $13,000 ($2,000 repaid on November 2019) from this amount, on November 30, $3,000 is due. So, $3,000 should be represented as current liability and the left balance $10,000 represented as long term debt.
