Question: On August 31, Year 2, ABC Co. signed a $2 million, 6% simple annual interest, 18-month note payable, with all principle and interest due at

On August 31, Year 2, ABC Co. signed a $2 million, 6% simple annual interest, 18-month note payable, with all principle and interest due at maturity. In its December 31, Year 2, balance sheet, ABC should classify what amounts as current liabilities for

Interest Principle

$40,000 $0

$40,000 $2,000,000

$0 $0

$120,000 $0

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