Darin Development Company engaged in the following transactions during the current year.
a. Borrowed $ 400,000 from Pleasantville Community Bank at the beginning of the year. The terms of the note call for annual payments of $ 50,000. The first annual payment has not been paid as of the end of the current year. (Ignore any interest payable.)
b. Made sales for the current year amounting to $ 2,900,000 with 40% collected during the current year.
c. Acquired inventory costing $ 345,000 on account.
d. Incurred taxes due on the current year’s income of $ 76,000.
e. Paid $ 60,000 for a three- year insurance policy in advance at the beginning of the current year.
f. Acquired new equipment costing $ 890,000 by borrowing the full amount at the end of the current year. The loan is due in 5 years.
Required
Identify and classify the noncash assets and liabilities resulting from the current-year transactions. Assume that your classification is made as of the end of the current year.