2. Notes payable. Sentry Security Systems purchased $72,000 of office equipment on April 1, 19X3, by...

 

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2. Notes payable. Sentry Security Systems purchased $72,000 of office equipment on April 1, 19X3, by signing a three-year, 12% note payable to Sharp, Inc. One-third of the principal, along with interest on the outstanding balance, is payable each April 1 until maturity. (The first payment is due in 19X4.) a. Fill in the following table to reflect Sentry's liabilities, assuming a March 31 year-end. Current liabilities Current portion of long-term debt Interest payable Long-term liabilities Long-term debt March 31 19X4 19X5 19X6 b. Assuming that interest is properly recorded at the end of each year, present the proper journal entry to record the last payment on April 1, 19X6. 2. Notes payable. Sentry Security Systems purchased $72,000 of office equipment on April 1, 19X3, by signing a three-year, 12% note payable to Sharp, Inc. One-third of the principal, along with interest on the outstanding balance, is payable each April 1 until maturity. (The first payment is due in 19X4.) a. Fill in the following table to reflect Sentry's liabilities, assuming a March 31 year-end. Current liabilities Current portion of long-term debt Interest payable Long-term liabilities Long-term debt March 31 19X4 19X5 19X6 b. Assuming that interest is properly recorded at the end of each year, present the proper journal entry to record the last payment on April 1, 19X6.

Answer rating: 100% (QA)

a Current Liablities Current Portion of Long Term Debt Interest Payable ... View the full answer