Portage Corporation began 2018 owing notes payable of $4.0 million. During 2018, Portage borrowed $1.9 million on

Question:

Portage Corporation began 2018 owing notes payable of $4.0 million. During 2018, Portage borrowed $1.9 million on notes payable and paid off $1.7 million of notes payable from prior years. Interest expense for the year was $1.1 million, including $0.2 million of interest payable accrued at December 31, 2018. Show what Portage should report for these facts on the following financial statements:

1. Income statement for 2018

a. Interest expense

2. Balance sheet as of December 31, 2018

a. Notes payable

b. Interest payable

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... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...

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