The Sweet Smell of Success Fragrance Company borrowed $60,000 from the bank to be paid back in five years and used all of the money to purchase land for a new store. Sweet Smell's balance sheet would show this as:
A. $60,000 under Land and $60,000 under Notes Receivable (long-term).
B. $60,000 under Other Assets and $60,000 under Other Liabilities.
C. $60,000 under Land and $60,000 under Notes Payable (long-term).
D. $60,000 under Depreciation Expense and $60,000 under Notes Payable (long-term).
Answer: C
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