Cullumber Company borrowed $760,000 on December 31, 2019, by issuing an $760,000, 8% mortgage note payable. The terms callfor annual installment payments of $113,262 on December 31. Your answer is incorrect.Indicate the amount of mortgage note payable to be reported as a current liability and as a long-term liability at December 31,2021. (Round answers to O decimal places, e.g. 15,250.)Current liabilityLong-term liability$tA

Introduction: Liabilities are legally binding promises that must be paid to some other person or…

Answered: Cullumber Company borrowed $760,000 on…

Cullumber Company borrowed $760,000 on December 31, 2019, by issuing an $760,000, 8% mortgage note payable. The terms call for annual installment payments of $113,262 on December 31.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Cullumber Company borrowed $760,000 on December 31, 2019, by issuing an $760,000, 8% mortgage note payable. The terms call
for annual installment payments of $113,262 on December 31.

Your answer is incorrect.
Indicate the amount of mortgage note payable to be reported as a current liability and as a long-term liability at December 31,
2021. (Round answers to O decimal places, e.g. 15,250.)
Current liability
Long-term liability
$
tA

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