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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
Use the information provided about the 2014 operations of Roxie Company to calculate the cash paid for merchandise.
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During 2010, the Garson Company entered into two transactions involving promissory notes and properly recorded each transaction. These are listed next:
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