Exercise 3-18 (Part Level Submission) Novak Corp. has three notes payable outsta

Question

Exercise 3-18 (Part Level Submission) Novak Corp. has three notes payable outstanding on December 31, 2016, as follows: 1. A six-year, 696, $330,000 note payable issued on March 31, 2016. Novak Corp. is required to pay $55,000 plus interest on March 31 each year starting in 2017 2. A seven-month, 4%, $165,000 note payable issued on July 1, 2016, Interest and principal are payable at maturity. 3. A 30-month, 5%, $660,000 note payable issued on September 1, 2016, Novak Corp. is required to pay $22,000 plus interest on the first day of each month starting on October 1, 2016. All payments are up to date. (a) XYour answer is incorrect. Try again. Calculate the current portion of each note payable. Current Portion Note 1 69,850 Note 2 2,850 Note 3 55,000 LINK TO TEXT Attempts: 2 of 3 used SAVE FOR LATER SUB MIT ANSWER

Explanation / Answer

Current Portion of Notes payable: Note 1 Amount due to be paid on Notes payable till Dec31 2017 55000 (i.e. within 12 months from Dec 31 2016) Note 2 Entire amount is due to be paid: 165000 Note3 Amount due to be paid within 12 months (22000*12) 264000 Note: Interest payable due on Dec 31 2016 is not part of note payable and is shown separately as current liability.

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