Chapter 8
Non-Current Liabilities
405
AP-15A (
7
)
On January 1, 2015, Sedar Co. issued a five-year, 8% instalment notes payable for $120,000
to finance upgrading its current equipment. The company’s year-end is December 31. The
repayment is done semi-annually on January 1 and July 1. Use a fixed principal plus interest
method to show the current and non-current liabilities on the partial balance sheet as at
December 31, 2017. Assume no other non-current liability has occurred, and accounts
payable and interest payable have balances of $50,000 and $2,400 respectively on
December 31, 2017.
