Chapter 11, Problem 6RQ

To determine

Long-term notes payable:

Long-term notes payable means the written promissory notes to pay a certain sum or part thereof after a specified time and it extends beyond a period of more than a year. Hence, they are the non-current or long-term liability for the business.

A short-term note payable is a current liability for the company as it is payable within a year. So, the current portion of the long-term debt which is payable within the current operating period is the current liability for the company and shown under the heading ‘current portion of long-term notes payable’

To determine the reporting of the given notes payable on the balance sheet