Jade Larson Antiques owes 520.000 on a truck purchased for use in the business. Assume the company makes timely principal payments of 55,000 each year at December 31 plus interest at 8%. Which of the following is true?
a. After the first payment is made, the company owes 515,000 plus three years' interest.

b. After the first payment, 515,000 would be shown as a long-term liability.

c. After the first payment is made, 55.000 would be shown as the current portion due on the long-term note.

d. Just before the last payment is made, 55,000 will appear as a long-term liability on the balance sheet.

Answer rating: 100% (QA)

Step 1 Long term notes Long term notes involves an agreement which is being entered ... View the full answer