Question

On January 1, 2020, Sandhill Co., a calendar-year company, issued $1044000 of notes payable, of which $261000 is due on January 1 for each of the next four years. The proper balance sheet presentation on December 31, 2020, is:

Answer 1

Answer:

Current liabilities, $261,000; Long-term Debt $783,000

Explanation:

Based on the information given we were told that the company issued the amount of $1044000 of notes payable in which the amount of $261000 was due on January 1 for each of the next 4 years based on this the proper balance sheet presentation on December 31, 2020 will be:

Current liabilities $261,000

Long-term Debt $783,000

($1044000-$261000)

Therefore The proper balance sheet presentation on December 31, 2020, is:Current liabilities, $261,000; Long-term Debt $783,000