On January 1, 2012, Wolstenholme Corp. borrowed $10,000 by signing a three-year, 7% note payable. The note is payable in three annual blended principal and interest instalments of $3,811 at the end of each year, December 31.
Instructions
(a) Prepare an instalment payment schedule for the term of the note. Round all amounts to the nearest dollar.
(b) Record
(1) The issue of the note on January 1,
(2) The first instalment payment on December 31.
(c) What amounts would be reported as current and noncurrent in the liabilities section of Wolstenholme's statement of financial position on December 31, 2012?