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

10–15 min.

Orthopedic Medical Group borrowed $2,100,000 on July 1, 2014, by issuing a 9%

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 Orthopedic 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

$ $

December 31 AppendixLO1