Elbow Lake Corp. issues a $600,000, 4-year, 4% note payable on March 31, 2017. The terms provide

Question:

Elbow Lake Corp. issues a $600,000, 4-year, 4% note payable on March 31, 2017. The terms provide for fixed principal payments annually of $150,000.
(a) Prepare the journal entries to record the note on March 31, 2017, and the first payment on March 31, 2018.
(b) Show the presentation of the current and non-current liability related to the note as at March 31, 2018.
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...