Balance Sheets and Mortgage Payable?
Added (1). Laverne purchased a new piece of equipment to be used in its new facility. The $370,000 piece of equipment was purchased with a $37,000 down payment and with cash received through the issuance of a $333,000, 6%, 5-year mortgage payable issued on January 1, 2017. The terms provide for annual installment payments of $79,053 on December 31.
Show the balance sheet presentation for this obligation for December 31, 2017. Be sure to distinguish between long term and short term.
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