Current Portion of Long-Term Debt The current portions of long-term debt, such as the current portion of installment notes, are reported on the balance sheet as a current liability. The portion of the note payable that is due within one year is reported as a current liability. The remaining portion of the note payable that is not due within one year is reported as a long-term liability. Installment Notes An installment note is a debt that requires the borrower to make equal periodic payments to the lender for the term of the note. Exercise 3 On the first day of the fiscal year, Shiller Company borrowed $85,000 by giving a seven-year, 7% installment note to Soros Bank. The note requires annual payments of $15,772, with the first payment occurring on the last day of the fiscal year. The first payment consists of interest of $5.950 and principal repayment of $9,822 Journalize the entries to record the following: al. Issued the installment note for cash on the first day of the fiscal year. a2. Paid the first annual payment on the note. For a compound transaction, if an amount box does not require an entry, leave it blank 5 9fri13 Prepare an amortization table for this installment note Amortization of Installment Notes For the Year January 1 Carrying Amount Note Payment (Cash Paid) Interest Expense (8% of January 1 Note Carrying Amount) Decrease in Notes Payable December 31 Carrying Amount Ending Year 1 Year 2 Year 3 Year 4 Journalize the entries for the issuance of the note and the four annual note payments. Year 1 Jan. 1 Year 1 Jan. 1 Year 1 Dec. 31 Year 1 Dec. 31 Year 2 Dec. 31 Year 2 Dec. 31