Current Attempt in Progress

Crane Company obtains $$50,400$ in cash by signing a $7\%,6-$month, $$50,400$ note payable to First Bank on July $1.$ Crane's fiscal year

ends on September $30.$ What information should be reported for the note payable in the annual financial statements?

In the balance sheet, Notes Payable of $

and Interest Payable of $

should be

reported as

In the income statement, Interest Expense of $

should be reported under