# If Bergen Air Systems takes out a $100,000 loan, with eight equal principal payments due over the next eight years, how much will be accounted for as a current portion of a noncurrent note payable each year? FindFindarrow_forward ### Principles of Accounting Volume 1 19th Edition OpenStax Publisher: OpenStax College ISBN: 9781947172685 #### Solutions Chapter Section FindFindarrow_forward ### Principles of Accounting Volume 1 19th Edition OpenStax Publisher: OpenStax College ISBN: 9781947172685 Chapter 12, Problem 5Q Textbook Problem 21 views ## If Bergen Air Systems takes out a$100,000 loan, with eight equal principal payments due over the next eight years, how much will be accounted for as a current portion of a noncurrent note payable each year?

To determine

Concept introduction:

Liabilities can be divided into current liabilities and noncurrent liabilities based on their payable period. A liability which is payable within the next accounting yearis considered as short-term liability, and all other liabilities are considered as long term or no current liabilities.

To choose:

The amount of current portion of the noncurrent note payable each year.

### Explanation of Solution

The amount of current portion of the noncurrent note payable is calculated as follows:

Current portion = Amount of note due to be paid in each year

Current portion =

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