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A mortgage of $420,000 has principal pay'ts of $120,000 that are due within the nxt year. Remaining $300,000 is not due til after 1 yr.?

How is the mortgage shown on the balance sheet?

A. As a current liability of $420,000

B. As a long term liability of $420,000

C. As another liability of $420,000 with a footnote breaking out current and long term portions

D. As a current liability of $120,000 and long term liability of $300,000

E. As a disclosure item only

Accounting Financial Reporting Financial Accounting Bookkeeping
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Question added by Tranquilino Jr Rivera , General Accountant , Enany Group of Companies
Date Posted: 2015/06/16
Upvote (2) Views (3) Followers (4) Answers (3) Report Question
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Shahbaz Hayder
by Shahbaz Hayder , Group Head of Finance , Sharif Group of Companies

Option D is the right answer.

lakshminarasimham mallareddi
by lakshminarasimham mallareddi , Manager Finance & Accounts , M/s. Vandana Global Limited, Raipur, Chhattisgarh

Correct Answer is C. As another liability of $420,000 with a footnote breaking out current and long term portions

Vijayabharathi Kalyanasundaram (ACMA - INDIA)

Answer D : As a current liability $120,000 and long term liability $300,000

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