Muffin Company Issued a Five-Year, Interest-Bearing Note Payable for

Multiple Choice

Muffin Company issued a five-year, interest-bearing note payable for $ 50,000 on January 1, 2021. Each January the company is required to pay $ 10,000 on the note. How will this note be reported on the December 31, 2022, balance sheet?

A) Long-term debt, $ 50,000
B) Long-term debt, $ 40,000
C) Long-term debt, $ 30,000; Long-term debt due within one year, $ 10,000
D) Long-term debt of $ 40,000; Long-term debt due within one year, $ 10,000