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Bramble Corp. issued a $34,000, 10%, 10-year installment note payable on January 1, 2022. Payments of...

Bramble Corp. issued a $34,000, 10%, 10-year installment note payable on January 1, 2022. Payments of $5,440 are made each January 1, beginning January 1, 2023. (a) What amounts should be reported under current liabilities related to the note on December 31, 2022? (b) What should be reported under long-term liabilities? BRAMBLE CORP.

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Answer #1
Payment schedule
Date Cash Interest Principal Carrying value
Payment Payment Payment of Notes payable
01.01.22 34000
01.01.23 5440 3400 2040 31960
01.01.24 5440 3196 2244 29716
Balance Sheet (as at 31.12.22)
Current liabilities:
Current portion of Notes (payable in Year-2023) 2040
Interest payable 3400
Total Current liabilities 5440
Long term liabilities:
Remaining portion of Notes payable (34000-2040) 31960
Total Liabilities as at 31.12.22 37400
Amount reported as current liabilities 5440
Amount reported as Long term liabilities: 31960
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