Question

12.00 points Barton Chocolates used a promissory note to borrow $1,450,000 on July 1, 2015, at an annual interest rate of 8 percent. The note is to be repaid in yearly installments of $290,000, plus accrued interest, on June 30 of every year until the note is paid in full (on June 30, 2020). Show how the results of this transaction would be reported in a classified balance sheet prepared as of December 31, 2015. (Do not round tmediate calculations.) BARTON CHOCOLATES Balance Sheet (partial) As of December 31, 2015

Answer 1

Ans.	BARTON CHOCOLATES
	Balance Sheet (partial)
	As of december 31, 2015
	LIABILITIES	AMOUNT	AMOUNT
	Current liabilities:
	Interest payable	58000
	Part of long term debt (current year)	290000
	Total current liabilities	348000	348000
	Long term Liabilities:
	Notes payable	1160000	1160000
	Total liabilities		1508000
	*Interest payalbe                                =		1450000 * 8% * 6/12
			58000
	*Long term notes payable =		1450000 - 290000
			1160000
	Part of long term debt = one year/ current portion of long term liability.