Cullumber Company borrowed $760,000 on December 31, 2019, by issuing an $760,000, 8% mortgage note payable. The terms callfor annual installment payments of $113,262 on December 31. Your answer is incorrect.Indicate the amount of mortgage note payable to be reported as a current liability and as a long-term liability at December 31,2021. (Round answers to O decimal places, e.g. 15,250.)Current liabilityLong-term liability$tA

Introduction: Liabilities are legally binding promises that must be paid to some other person or…

Answered: Cullumber Company borrowed $760,000 on…

Cullumber Company borrowed $760,000 on December 31, 2019, by issuing an $760,000, 8% mortgage note payable. The terms call for annual installment payments of $113,262 on December 31.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable

Section: Chapter Questions

Problem 14RE: On January 1, 2019, Boater Company issues a 20,000 non-interest-bearing, 5-year note for equipment....

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Question

Cullumber Company borrowed $760,000 on December 31, 2019, by issuing an $760,000, 8% mortgage note payable. The terms call
for annual installment payments of $113,262 on December 31.

Your answer is incorrect.
Indicate the amount of mortgage note payable to be reported as a current liability and as a long-term liability at December 31,
2021. (Round answers to O decimal places, e.g. 15,250.)
Current liability
Long-term liability
$
tA

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