(a)
Liabilities
Liabilities are an obligation of the business to pay to the creditors in future for the goods and services purchased on account or any for other financial benefit received. It can be current liabilities or a non-current liabilities depending upon the time period in which it is paid.
Notes payable
Notes Payable is a written promise to pay a certain amount on a future date, with certain percentage of interest. Companies use to issue notes payable to meet short-term financing needs.
To Prepare: The amortization schedule of notes payable from 2016 to 2021.
(b)
To Prepare: The
To Prepare: The journal entry to record the first installment payment on December 31, 2017.
To Prepare: The journal entry to record the second installment payment on June 30, 2018.
(c)
To Prepare: The balance sheet presentation of notes payable for June 30, 2018.
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FINANCIAL ACCOUNTING: TOOLS WP ACCESS
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