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    pucivogel57's Avatar
    pucivogel57 Posts: 2, Reputation: 1
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    #1

    Jan 8, 2012, 09:46 AM
    How do I calculate notes payable?
    A bank grants a firm 675000$ notes payable at 12% interest , extended in 5 years and no interest bearing debt is retired, How do I show it in the balance sheet of the next year?
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #2

    Jan 8, 2012, 11:13 AM
    As a current Liability for the portion of the debt that is due in one year or one business operating cycle, and the rest of the debt will be listed as a long-term liability.
    pucivogel57's Avatar
    pucivogel57 Posts: 2, Reputation: 1
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    #3

    Jan 8, 2012, 12:32 PM
    Shoul I include the interest paid during that year or only the principal in the current liabilities? What are the effects on cash in the assets?
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