Three notes payable are listed Each note requires that the principal and all the interest will be repaid on the maturity date All companies have a December 31 scal year end On January 1, 2009, Alpha, Inc borrowed $3,600 on a six month, 10 note On March 31, 2009, Beta Co borrowed $12,000 on a one ye...

a Alpha Company 1 Maturity date July 1 2009 2 Interest Principal Rate Time Interest 3600 10 612 180 Maturity value Principal Interest 3600 180 3780 3 ...

Three notes payable are listed. Each note requires that the principal and all the interest will be

Question:

Three notes payable are listed. Each note requires that the principal and all the interest will be repaid on the date. All companies have a December 31 ﬁscal year end.
• On January 1, 2009, Alpha, Inc. borrowed $3,600 on a six-month, 10% note.
• On March 31, 2009, Beta Co. borrowed $12,000 on a one-year, 12% notes.
• On August 1, 2009, Gamma Industries borrowed $3,000 on a two-year, 9% note.
• On November 30, 2009, Sigma, Inc. borrowed $2,000 on a 90-day note, 7% notes.
Required:
(a) For each note, determine the following:
(1) date
(2) value
(3) Interest accrued on December 31, 2009
(4) Interest accrued on December 31, 2010
(b) Which notes will be listed on the 2009 as
(1) Current liabilities?
(2) Long-term liabilities?
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...