On July 1, 2020, Sunland Ltd. borrowed $16,500 by signing a two-year, 4% note payable. The note is payable in two annual instalments of $8,748 on June 30. The company records adjusting journal entries annually at year end on December 31.

(a)

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Prepare an instalment payment schedule for the term of the note. (Round answers to the nearest whole dollar, e.g. 5,255.)

Annual Interest Period		Cash Payment		Interest Expense		Reduction of Principal		Principal Balance
July 1, 2020								$enter a dollar amount
June 30, 2021		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount		enter a dollar amount
June 30, 2022		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount

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(b)

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Record (1) the receipt of the $16,500 cash and the issue of the note on July 1, 2020; (2) the accrual of interest on December 31, 2020; (3) the first payment on June 30, 2021; and (4) the accrual of interest on December 31, 2021. (Round answers to the nearest whole dollar, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.)

Date	Account Titles and Explanation	Debit	Credit
2020
choose a transaction date June 30July 1Dec. 31	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
choose a transaction date June 30July 1Dec. 31	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
2021
choose a transaction date June 30July 1Dec. 31	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
choose a transaction date June 30July 1Dec. 31	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount

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(c)

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What amounts would Sunland report as current and non-current in the liabilities section of its statement of financial position on December 31, 2020? (Round answers to the nearest whole dollar, e.g. 5,255.)

SunlandLtd. Statement of Financial Position (Partial) choose the accounting period December 31, 2020For the Month Ended December 31, 2020For the Year Ended December 31, 2020
select an opening name for subsection one Total Non-Current LiabilitiesCurrent LiabilitiesTotal Current LiabilitiesNon-Current Liabilities
enter an account title		$	enter a dollar amount
enter an account title			enter a dollar amount
select an opening name for subsection two Current LiabilitiesNon-Current LiabilitiesTotal Current LiabilitiesTotal Non-Current Liabilities
enter an account title			enter a dollar amount

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(d)

What amount would Sunland report as current and non-current in the liabilities section of its statement of financial position on December 31, 2021?