On August 1 2016 a Company Borrowed Cash and Signed $\begin{array}{cc}&&\text { Note Payable } &&&& \text { Interest Payable } \\\end{array}$

Short Answer

On August 1 2016 a company borrowed cash and signed a one-year interest-bearing note on which both the face value and interest are payable on August 1 2017. How will the note payable and the related interest be classified in the December 31 2016 balance sheet? $\begin{array}{cc}&&\text { Note Payable } &&&& \text { Interest Payable } \\\end{array}$
A) $\begin{array}{ll}\text { Current liability } &&& \text { Noncurrent liability } \\\end{array}$
B) $\begin{array}{ll}\text { Noncurrent liability } & \text { Current liability } \\\end{array}$
C) $\begin{array}{ll}\text { Current liability } &&& \text { Current liability } \\\end{array}$
D) $\begin{array}{ll}\text { Noncurrent liability } && \text { Not shown }\end{array}$