Elbow Lake Corp. issues a $600,000, 4-year, 4% note payable on March 31, 2021. The terms provide

Question:

Elbow Lake Corp. issues a $600,000, 4-year, 4% note payable on March 31, 2021. The terms provide for fixed principal payments annually of $150,000.

a. Prepare the journal entries to record the note on March 31, 2021, and the first payment on March 31, 2022.

b. Show the balance sheet presentation of the current and non-current liability related to the note as at March 31, 2022.

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...

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