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I cannot figure current portion of mortgage payable for the financial statement Emily, Bev, and Doug had originally thought that the computer equipment upgrade that
I cannot figure current portion of mortgage payable for the financial statement
Emily, Bev, and Doug had originally thought that the computer equipment upgrade that ABC decided to undertake could be paid for with cash in the bank. As at June 25, 2021, the balance of the 5% mortgage payable after making the payment on that day was $49,146. Monthly principal and interest instalment payments are $687, paid on the 25th of each month. The mortgage is up for renewal on November 25, 2021. Because interest rates have fallen since the original mortgage was signed, it can be renewed at an interest rate of 4%. In addition, Emily has decided to reduce the mortgage term to five years, instead of the seven years remaining. Unfortunately, there was not enough cash to pay for the computer equipment as originally planned, and $21,000 of the operating line of credit had to be used to finance this upgrade. Emily would like to transfer the balance of the line of credit onto the mortgage payable balance outstanding instead of trying to pay the balance owed on the line of credit from cash generated from operations. The bank has agreed to accommodate both of these requests and has advised that the monthly instalment payments will be $1,247 for the combined amounts and revised term, with payments starting on December 25, 2021. (A) Cash Payment (B) Interest Expense (C) Reduction of Principal Balance $ 1247 $ 226 $ 1021 Jan. 1247 222 1025 Monthly Interest Period 25, Nov. 2021 25, Dec. 2021 25, 2022 25, Feb. 2022 25, Mar. 2022 25, Apr. 2022 25, May 2022 25, June 1247 219 1028 1247 215 1032 1247 212 1035 1247 208 1039 1247 205 1042 2022 July 1247 202 1045 25. 2022 25. Aug. 2022 1247 198 1049 Sept. 1247 195 1052 Oct. 1247 191 1056 25. 2022 25, 2022 25. 2022 25, Nov. 1247 188 1059 Dec. 1247 184 1063 2022 Jan. 1247 181 1066 Feb. 1247 177 1070 Mar. 1247 173 1074 25, 2023 25, 2023 25, 2023 25, 2023 25, 2023 25. 2023 Apr. 1247 170 1077 May 1247 166 1081 June 1247 163 1084 (A) Payment (B) Interest Expense (C) Reduction of Principal (D) Principal Balance $ 67721 1247 $ 226 $ 1021 66700 1247 222 1025 65675 1247 219 1028 64647 1247 215 1032 63615 1247 212 1035 62580 1247 208 1039 61541 1247 205 1042 60499 1247 202 1045 59454 1247 198 1049 58405 1247 195 1052 57353 1247 191 1056 56297 1247 188 1059 55238 1247 184 1063 54175 1247 181 1066 53109 1247 177 1070 52039 1247 173 1074 50965 1247 170 1077 49888 1247 166 1081 48807 1247 163 1084 47723 (e) Your answer is partially correct. From the information provided in part (c), show the presentation of the current and non-current portions of the mortgage payable on ABC's statement of financial position at June 30, 2022. ANTHONY BUSINESS COMPANY LTD. Statement of Financial Position (Partial) June 30, 2022 Liabilities Current Liabilities Current Portion of Mortgage Payable $ Non-Current Liabilities Mortgage Payable $ 47723Step by Step Solution
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