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Problem 1: A company has taken up 5-year bank loan of $300,000 on 1 October 2019 at the interest rate of 4% per annum. The loan is repayable in three equal instalments in December every year with the first payment to be made on 31 December 2019. Which of the following will be shown on the company's financial statements for the year ended 31 December 2019?
a) Interest expense of $12,000b) Current liability of $200,000c) Interest income of $3,000d) Non-current liability of $100,000
Required - Illustrate how the information above should be shown on the balance sheet of Shamrock Company on December 31, 2020
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Childers Service Company provides services to customers totaling $2,700, for which it billed the customers. How would the transaction be recorded
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