On January 1, 2021, Cullumber Corp. borrows $9,000 by signing a 3-year, 3% note payable. The note is repayable in three annual fixed principal payments on December 31 of each year.

Calculate the annual principal payment.

Annual principal payment

$enter the Annual principal payment in dollars

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Prepare an instalment payment schedule for the note.

Period		Cash payment		Interest Expense		Reduction of Principal		Principal Balance
Jan. 1, 2021		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount
Dec. 31, 2021		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount
Dec. 31, 2022		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount
Dec. 31, 2023		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount

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Prepare journal entries to record the note and the first instalment payment. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
Jan. 1, 2021	enter an account title to record issuance of note on January 1	enter a debit amount	enter a credit amount
	enter an account title to record issuance of note on January 1	enter a debit amount	enter a credit amount
	(To record issuance of note.)
Dec. 31, 2021	enter an account title to record payment on note on December 31	enter a debit amount	enter a credit amount
	enter an account title to record payment on note on December 31	enter a debit amount	enter a credit amount
	enter an account title to record payment on note on December 31	enter a debit amount	enter a credit amount
	(To record payment on note.)

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--/4

What amounts would be reported as current and non-current in the liabilities section of Cullumber's balance sheet at December 31, 2021?

Current liability		$enter a dollar amount
Non-current liability		$enter a dollar amount

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