On January 1,2013,Thames Company purchases property and signs a 6-year mortgage note $60,000 at 4%.Please see the partial amortization schedule below.
- At the end of 2013,what amount would be shown on the balance sheet for current portion of mortgage payable?
A) $50,466.48
B) $9,921.93
C) $9,533.52
D) $2,226.48

Question

On January 1,2013,Thames Company purchases property and signs a 6-year mortgage note $60,000 at 4%.Please see the partial amortization schedule below. 
- At the end of 2013,what amount would be shown on the balance sheet for current portion of mortgage payable?
A) $50,466.48 
B) $9,921.93 
C) $9,533.52 
D) $2,226.48

Quizplus · Accepted Answer

The current portion of the mortgage payable represents the portion of the long-term debt that is due within the next year. Based on the partial amortization schedule provided, the balance of the mortgage payable at the end of 2013 is $50,388.41. The portion of the mortgage payable due within the next year can be calculated as follows:

Beginning balance of mortgage payable = $60,000 
Principal payment made during the year = $9,611.59 
Ending balance of mortgage payable = $50,388.41

Therefore, the current portion of the mortgage payable is $9,921.93 ($50,388.41 - $40,466.48). The correct answer is B.

On January 1,2013,Thames Company Purchases Property and Signs a 6-Year