Classifying notes payable as current or long-term

(Learning Objectives 5 & 6) 10–15 min.

Associated Physicians Group borrowed $1,500,000 on July 1, 2014, by issuing a 7%

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. Insert the appropriate amounts to show how Associated Physicians Group would report its current and long-term liabilities.

Current Liabilities:

Current Portion of Long-Term Note Payable Interest Payable Long-Term Liabilities:

Long-Term Note Payable 2014

$

2015 2016

$ $

AppendixLO1