How the mortgage will be reported on the july

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Question 1: On July 31, 2020, Able Co. has a $500,000 15-year mortgage outstanding. Over the next year the company will make 12 monthly payments of $5,000 representing $33,500 of interest and $26,500 of principal repayment. Which of the following best represents how the mortgage will be reported on the July 31, 2020 statement of financial position?

Current liabilities          Non-current liabilities

a)$26,500                   $473,500

b)$26,500                     $440,000

c)$60,000                   $440,000

d)$60,000                     $473,500

Reference no: EM132495618

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