Question

Lime Co. incurs a $4,000 note with equal principal installment payments due for the next eight years. What is the amount of the current portion of the noncurrent note payable due in the second year? a. nothing, since this is a noncurrent note payable b. $1,000 c. $800 d. $500

Answer 1

D. $500, there is two ways to find the answer to this problem, divide $4,000 by 8 which equals to 500 and if you aren’t sure for that answer also known as double checking then times 500 by 8 which equals 4,000. So the answer would be D. $500