Chapter 9, Problem 35BE

Classifying notes payable as current or long-term (Learning Objectives 5 & 6) 10-15 min.

Tri-County Medical Group borrowed $1,050,000 on July 1, 2018, by issuing a 5 percent long-term note payable that must be paid in three equal annual installments, plus interest, each July 1 for the next three years.

Requirement

1. 1. Insert the appropriate amounts below to show how Tri-County Medical Group would report its current and long-term liabilities.

	December 31
	2018	2019	2020
Current Liabilities: Current Portion of Long-Term Note Payable Interest Payable Long-Term Liabilities: Long-Term Note Payable	$	$	$