Mel's Building Centre has three obligations outstanding on December 31, 2021, as follows:
1. Six-year, $ 75,000, 5%, note payable issued on December 31, 2019. Mel's Building Centre is required to pay $ 12,500 plus interest on December 31 each year starting in 2020.
2. Five-year, $ 90,000, 4.5%, note payable issued on November 30, 2020. Mel's Building Centre is required to pay $ 1,500 plus interest at the end of each month starting on December 31, 2020.
3. Twenty-year, $ 600,000, 3.75%, mortgage payable issued on April 1, 2004. Mel's Building Centre is required to pay $ 2,500 plus interest at the end of each month starting on May 1, 2004.
Instructions
Calculate the amount of each note to be included in current and non-current liabilities on Mel's Building Centre December 31, 2021, balance sheet. Ignore interest.

Question

Quizplus · Accepted Answer

The Answer of Mel's Building Centre has three obligations outstanding on December 31, 2021, as follows:
1. Six-year, $ 75,000, 5%, note payable issued on December 31, 2019. Mel's Building Centre is required to pay $ 12,500 plus interest on December 31 each year starting in 2020.
2. Five-year, $ 90,000, 4.5%, note payable issued on November 30, 2020. Mel's Building Centre is required to pay $ 1,500 plus interest at the end of each month starting on December 31, 2020.
3. Twenty-year, $ 600,000, 3.75%, mortgage payable issued on April 1, 2004. Mel's Building Centre is required to pay $ 2,500 plus interest at the end of each month starting on May 1, 2004.
Instructions
Calculate the amount of each note to be included in current and non-current liabilities on Mel's Building Centre December 31, 2021, balance sheet. Ignore interest.

Mel's Building Centre Has Three Obligations Outstanding on December 31