On 1 July 2016,Avery Services Issued a Long-Term Note Payable

Multiple Choice

On 1 July 2016,Avery Services issued a long-term note payable for $10 000.It is payable over a five 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 2016?

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