On 1 July 2013, Avery Services Issued a Long- Term

Multiple Choice

On 1 July 2013, Avery Services issued a long- term note payable for $10 000. It is payable over a 5- year term in $2 000 instalments on 1 July of each succeeding year. When the note was issued, the principal amount was recorded in long- term notes payable and a second entry was made to reclassify the current portion. How will this information be shown on the balance sheet dated 31 December 2013?

A) $10 000 shown as current liability only
B) $2 000 shown as current liability; $8 000 shown as non- current liability
C) $2 000 shown as current liability; $10 000 shown as non- current liability
D) The entire $10 000 shown as non- current liability