On January 1, 2022, Paulding Company, a calendar-year company, issued $1,000,000 of notes payable, of which $250,000 is due on January 1 for each of the next four years. The proper balance sheet presentation on December 31, 2022, is Current liabilities, $1,000,000. Long-term debt, $1,000,000. Current liabilities, $250,000; Long-term Debt, $750,000. Current liabilities, $750,000; Long-term Debt, $250,000.

On January 1, 2022, Paulding Company, a calendar-year company, issued $1,000,000 of notes payable, of which $250,000 is due on January 1 for each of the next four years. The proper balance sheet presentation on December 31, 2022, is Current liabilities, $1,000,000. Long-term debt, $1,000,000. Current liabilities, $250,000; Long-term Debt, $750,000. Current liabilities, $750,000; Long-term Debt, $250,000.

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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