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?

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?

Quizplus · Accepted Answer

According to the partial amortization schedule provided, the current portion of the mortgage payable at the end of 2013 would be $9,921.93. This is the principal payment due in the first year (which is also the current portion) and can be found in the first row of the table.

On January 1, 2013, Thames Company Purchases Property and Signs