Chapter 8
Non-Current Liabilities
409
AP-17A (
6
)
Aidan’s Inc. is looking to replace its old delivery truck, which constantly breaks down. It just
happens that one of its suppliers has a slightly used delivery truck for sale. Because Aidan’s
Inc. has been doing business with this supplier for many years, the supplier offers Aidan’s a
great deal.
The supplier will sell the truck to Aidan’s for $68,000 on January 1, 2016 and issue a five-year
note payable at 3%. Instalment payments of $7,374 are made semi-annually.
Prepare a table to calculate the total interest paid over the life of the note.
Round all amounts to the nearest whole dollar.
Date
A
B
C
D
Cash Payment Interest Expense Reduction of
Principal
Principal Balance
