Chapter 16, Problem S16.7SE

To determine

Account Payable: For any delivered goods or services, the cash owed by the business which they need to pay to the suppliers is called account payables. In the balances sheet, the account payables are shown as current liabilities.

Note Payable: When the company raise finances by issuing note to the lender stating an interest rate along with the payback time period, such notes are regarded as Notes Payable. These may be long term or short term, based upon the mentioned time period.

Requirement: 1

The acquisition value of the plant and equipments made during the year.

To determine

Requirement: 2

The payment of long-term note payable.