On October 1, your company issued a mortgage note of $459,000 that requires monthly payments, excluding interest, of $3,000 at the end of each month, beginning October 31. On the December 31 balance sheet, the mortgage note will be reported as a:
A) current liability of $27,000 and a long-term liability of $423,000.
B) current liability of $36,000 and a long-term liability of $414,000.
C) current liability of $9,000 and a long-term liability of $441,000.
D) a long-term liability of $450,000.
Answer: B
If the answers is incorrect or not given, you can answer the above question in the comment box. If the answers is incorrect or not given, you can answer the above question in the comment box.