Chapter 8
Non-Current Liabilities
424
Date
Account Title and Explanation
Debit
Credit
AP-15B (
7
)
On December 31, 2016, Shima Company issued a four-year, 12% instalment notes payable for
$400,000 to finance an additional product line. The company’s year-end is December 31. The
repayment is done quarterly starting from March 31. Using a blended payment plus interest
method, present how the current and non-current sections for this notes payable would be
shown on the partial balance sheet as of December 31, 2017. Assume an equal instalment
amount of $31,844 is determined per quarter.
