Assume that on December 1,2010 your company borrowed 14,000, a portion of which is to be repaid each year on November 30. Specifically your company will make the following principal payments 2011 $2,000 2012 3,000 2013 4,000 and 2014 5,000. Show how this loan will be reported in the December 31, 2011 and 2010 balance sheets assuming that principal payments will be made when required.

In the Current liabilities section you will list what is due within one year, while the rest that is due will be a noncurrent liability which will be shown as a long-term liability