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Financial Accounting

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Notes Payable: Current vs Non Current Mid Year With Amounts

FINACT-HRD1CV

Rex Company signs a 3-year 8% interest-bearing note on June 1, 20x5 for \$36,000. The company is required to pay $1,000 on the last day of each month plus whatever amount of interest has been accrued that month.

What amount of the Notes Payable is reported in the Current Liabilities section and what amount is reported in the Non-Current Liabilities section of the Balance Sheet at December 31, 20x5?

A

Current \$0; Non -Current \$36,000

B

Current \$18,000; Non-Current \$18,000

C

Current\$36,000; Non-Current \$0

D

Current \$12,000; Non-Current \$17,000