Use the Information Above to Answer the Following Question

Multiple Choice

Use the information above to answer the following question.How would this information be reported on the balance sheet at the end of the first quarter?

A) $400 as interest expense and $20,000 under long-term debt.
B) $400 as interest payable,$5,000 as current portion of long-term debt under current liabilities,and $15,000 under long-term debt.
C) $1,600 of interest under current liabilities,$5,000 as current portion of long-term debt under current liabilities and $15,000 under long-term debt.
D) $400 as interest payable under current liabilities and $20,000 under long-term debt.