Company x borrowed $100,000 from the bank to be repaid with interest - ProProfs Discuss
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Company x borrowed $100,000 from the bank to be repaid with interest at the market rate over the next 5 years, with payments beginning next month. Which of the following best describes the presentation of this debt in the balance sheet as of today(the date of borrowing)?



A. A portion of the $100,000 in the current liability section and the remainder of the principal in the long term liability section
B. A portion of the $100,000 plus interest in the current liability section and the remainder of the principal plus interest in the long term liability section
C. $100,000 in the long term liability section
D. $100,000 plus the interest to be paid over the 5 year period in the long term liabilty section

This question is part of Accounting practice final
Asked by Mackenzie_Roman, Last updated: Feb 16, 2020

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1 Answer

John Smith

John Smith

Answered Feb 26, 2017

A portion of the $100,000 in the current liability section and the remainder of the principal in the long term liability section
 

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