30 yr 7% 350,000 Purchase 375K 1/1/20X1. I don't understand how we got this principal balance and L-T Liability?

n and Jill Bowden eet as of 12/31/20X2 LIABILITIES AND NET WORTH Current Liabilities W Credit Cards W Auto #2 JT Personal Residence Total Current Liabilities $25,000 $4,968 $4,088 $34,056 Long-Term Liabilities W Auto #2 JT Personal Residence $11,208 $338,544 Total Long-Term Liabilities $349,752 Total Liabilities $383,808 Total Net Worth $249,192 Total Liabilities and Net Worth $633,000 II 11 II = Home Loan Calculation* (Present Value) PV $350,000 (Term) N 360 7% (Interest Rate) i = 0.583 12 (Future Value) FV 0 (Payment) PMT $2,328.56 12/31/20X2 $342,632 Principal Balance 12/31/20X3 $338,544 (L-T Liability) Principal Balance $4,088 (Current Liability) II 11 =