Question: On December 1 , 2 0 2 4 , your company borrowed $ 2 8 , 5 0 0 , a portion of which is

On December 1,2024, your company borrowed $28,500, a portion of which is to be repaid each year on November 30. Specifically, your company will make the following principal payments: 2025, $3,800; 2026, $5,700; 2027, $7,600; and 2028, $11,400.
Required:
Show how this loan will be reported in the December 31,2025 and 2024 balance sheets, assuming principal payments will be made when required.

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