Notes Payable

On October $2,$ Year $1,$ a company borrowed cash and signed a $3-$year, interest$-$bearing note on which both the principal and interest are payable on October $2,$ Year $4.$ At December

$31,$ Year $3,$ the principal and accrued interest should:

a$.$ not be reported on the balance sheet as liabilities.

b$.$ be reported on the balance sheet as long$-$term notes payable.

c$.$ be reported on the balance sheet as noncurrent liabilities.

d$.$ be reported on the balance sheet as current liabilities.