Question

Lionworks Inc. signed a $57.000 8% 30-year installment note on November 1, 2016. The note requires semiannual payments of $950 plus interest on May 1 and November 1 of each year. How will Lionworks this loan on its 31, 2016 Balance Sheet? A. Current Portion of Long-term debt, $1,900; Long-term debt, $55,100 B. Current Portion of Long-term debt, $57,000;. Long-term debt, $0 C. current Portion of Long-term debt, $0; Long-term debt, $57.000 D. Current Portion of Long-term debt, $950; Long-term debt, $56.050

Answer 1

a) Current portion of long-term debt, $1900.-

Long-term debt, $55,100

Step-by-step explanation:

Long-term debt refers to a company´s loans liabilities that will not become due within one year of balance sheet date