Assume instead that the company follows ASPE. 1. Interest expense (debit balance) 2. Loss on restructuring of debt 3. Mortgage payable (payable in full in five years) 4. 5. Debenture bonds payable (maturing in two years). The company breached the covenant during the year, which makes the amount payable immediately. After year end. before the issuance of the financial statements, the company obtained a waiver from the lender indicating it will not demand early repayment. Promissory notes payable (due in equal instalments over 10 years) - 1/10 of the balance Current Assets Current Liability Long-term Liability Other Expenses and losses Long-term Assets Interest Expense