On January 2, 2017, Brook Company acquired machinery by issuing a 4%, $354,000 n

Question

On January 2, 2017, Brook Company acquired machinery by issuing a 4%, $354,000 note due in 5 years on December 31, 2020. Annual payments are $79,259 each December 31. The payment schedule is: AnnualPrincipal Portion Interest Portion of Payment Principal Balance at Year-End Payment of Payment Year 2017 2018 2019 79,259 9,259 79,259 79,259 79,259 65,099 67.703 70.411 73.228 77,559 14,160 1556 8.848 6.031 1,700 288,901 221.198 150,787 77,559 Required: Using the information provided, complete the following liabilities section of Brook Company's balance sheet at December 31: (Leave no cells blank-be certain to enter "0" wherever required.) 2018 2019 2020 Current liabilities: Current portion of non-current debt Interest payable Long-term debt

Explanation / Answer

2017 2,018 2019 2020 Current liabilities: Current portion of non-current assets 67703 70411 73228 77559 Interest payable 0 0 0 0 Non-current liabilities: Long term debt 221198 150787 77559 0 Note: As annual payment is made on Dec 31 every year. Therefore, the interest is served every year at end of Dec31 with no liabilities is pending on it.

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