Question: A five-year, $100,000, 6% note payable was issued on December 31, 2010. The note requires principal payments of $20,000 plus interest due each year beginning

A five-year, $100,000, 6% note payable was issued on December 31, 2010. The note requires principal payments of $20,000 plus interest due each year beginning December 31, 2011. On December 31, 2012, immediately after the note payment, the balance sheet would show

A. $60,000 in long-term notes payable

B. $6,000 in interest payable

C. $20,000 in current portion of long-term notes payable and $6,000 in interest payable

D. $40,000 in long term notes payable

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