Barton Chocolates used a promissory note to borrow $950,000 on July 1, 2009, at an annual interest rate of 7 percent. The note is to be repaid in yearly installments of $190,000, plus accrued interest, on June 30 of every year until the note is paid in full (on June 30, 2014).
Required:
Show how the results of this transaction would be reported in a classified balance sheet prepared as of December 31, 2009. (Omit the "tiny_mce_markerquot; sign in your response.)
Balance sheet
December 31, 2009
Current Liabilities:
interest payable
$
current portion of long term debt
long term debt