Keller Company Issued a Five-Year Interest-Bearing Note Payable for $200,000

Multiple Choice

Keller Company issued a five-year interest-bearing note payable for $200,000 on January 1, 2013. Each January the company is required to pay $40,000 on the note. How will this note be reported on the December 31, 2014, balance sheet?

A) Long-term debt, $200,000
B) Long-term debt, $160,000
C) Long-term debt, $120,000; Long-term Debt due within one year, $40,000
D) Long-term debt of $160,000; Long-term Debt due within one year, $40,000