Chapter 8, Problem 14RQ

To determine

Notes payable:

Notes Payable is a written promise to pay a certain amount on a future date, with certain percentage of interest. Companies use to issue notes payable to meet short-term financing needs.

• Current note payables are debt obligations that need to be paid within a period of one year or less.
• Long –term note payables are debt obligations which are to be paid for more than one year.

To Determine: The way in which the firm will present the debt of notes payable within the current and long-term liabilities sections of the current year’s balance sheet.