Nash's Trading Post, LLC issued a five-year interest-bearing note payable for $222000 on January 1, 2019. Each January the company is required to pay $44000 on the note. How will this note be reported on the December 31, 2020, balance sheet

balance sheet

liabilities

note payables (current portion) 44,000

non-current liabilities

long-term note payable 178,000

Explanation:

On December 31,2020 there will be a portion of the note that will be declared as current liability while another non-current as within 12-months there is payment due (to be more precise next day after the balance close)

Thus 222,000 - 44,000 = 178,000 long-term

while the 44,000 are declared short-term