Chapter 8
Non-Current Liabilities
427
AP-17B (
6
)
Bee Inc. needs a truck for its current operations. The company just received a good deal from
one of its long-time clients.
The client will sell the truck to Bee for $68,000 on January 1, 2016 and issue a five-year note
payable at 6%. Payments will be made semi-annually using the fixed principal plus interest.
Prepare a table to calculate the total interest paid over the life of the note.
Round all amounts to the nearest whole dollar.
Interest Payable
A
B
C
D
Cash Payment
Interest
Expense
Reduction of
Principal
Principal
Balance
