Question 2 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 2 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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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