Answered: current liabilities in connection with…

Business

Accounting

current liabilities in connection with the note at December 31, 2017?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 1PA: On January 1, 2018, King Inc. borrowed $150,000 and signed a 5-year, note payable with a 10%...

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Question

Purdum Farms borrowed $10 million by signing a five-year note on December 31, 2016. Repayments of the principal are paid annually in installments of $2 million each. Purdum Farms made the first payment on December 31, 2017 and then prepared its 2017 year-end financial statements. What amount should be reported as current liabilities in connection with the note at December 31, 2017?

$10 million

$8 million

$2 million

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