Question
Problem 10-14 Current versus non-current portions of debt LO1 03.20-41 eBook On January 2, 2023, Brook Company acquired machinery by issuing a 3%, $379,000 note
Problem 10-14 Current versus non-current portions of debt LO1
03.20-41
eBook
On January 2, 2023, Brook Company acquired machinery by issuing a 3%, $379,000 note due in 5 years on December 31, 2027.
Annual payments are $84,175 each December 31. The payment schedule is:
Year
2023
2024
2025
2026
2027
Annual
Payment
$84,175
84,175
84,175
84,175
84,175
Principal Portion
Interest Portion
of
Principal Balance
Payment
of Payment
at Year-End
$72,805
$11,370
$306,195
74,989
77,239
9,186
231,206
6,936
79,556
4,619
153, 967
74,411
74,411
9,764
0
Required:
Using the information provided, complete the following liabilities section of Brook Company's balance sheet at December 31: (Leave no cells blank - be certain to enter "O" wherever required.)
December 31,
2023
2024
2025
2026
Current liabilities:
Current portion of non-current debt
Interest pavable
Non-current liabilities:
Long-term debt
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Financial Accounting Introduction To Concepts Methods And Uses
Authors: Clyde P. Stickney, Roman L. Weil
11th Edition
0324222971, 978-0324222975
