Xyz Company's Yearend Is December 31,20x1 and Its Financial Statements

Question 21
Multiple Choice

XYZ Company's yearend is December 31,20x1 and its financial statements are issued in the following March.On January 24,20x2.A 10 year note payable came due and was paid by issuing XYZ common stock to the creditor.In its December 31,20x1 balance sheet,XYZ should A)Report the note as a current liability because it was due on January 24,20x2 - only 24 days after the year end. B)Report the note as a long-term liability because it was not paid off with a current asset or replaced by another current liability. C)Report the note as a long-term liability because it was extinguished paid off)on January 24,20x2 - 24 days after the year end. D)Report the note as a long-term liability because it was a 10 year note.