←Jade Larson Antiques owes $20,000 on a truck purchased for use in the business. Assume the company makestimely principal payments of $5,000 each year at December 31 plus interest at 8%. Which of the following is true?O A. Just before the last payment is made, $5,000 will appear as a long-term liability on the balance sheet.OB. After the first payment is made, $5,000 would be shown as the current portion due on the long-term note.OC. After the first payment is made, the company owes $15,000 plus three years' interest.O D. After the first payment, $15,000 would be shown as a long-term liability.

Long-term notes payable: Long-term notes payable represent a legal and written promise made by the…

Answered: ← Jade Larson Antiques owes $20,000 on…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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