This continues the Pure Water, Inc., example from the Continuing Problem in Chapter 8. Pure Water, Inc.,

Question:

This continues the Pure Water, Inc., example from the Continuing Problem in Chapter 8. Pure Water, Inc., purchased some of its fixed assets during 201 2 using long-term debt. The following table summarizes the nature of this long-term debt. Assume the fiscal year ends on December 31 .

Requirements
1 . C alculate the interest expense that Pure Water, Inc., should accrue as of December 31 , 201 2. Round your answer to the nearest dollar. Use 365 days for the note payable.
2. Prepare the balance sheet presentation at December 31 , 201 2 for all long-term debt indicating the portion that should be classified as current and the portion that should be classified aslong-term.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...