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 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) Maturity date
(2) Maturity value
(3) Interest accrued on December 31, 2009
(4) Interest accrued on December 31, 2010
(b) Which notes will be listed on the 2009 balance sheet as
(1) Current liabilities?
(2) Long-term liabilities?