Notes payable.

Sentry Security Systems purchased $72,000 of office equipment on April 1, 19X3, by signing a three-year, 12% note payable to Sharp, Inc. One-third of the principal, along with interest on the outstanding balance, is payable each April 1 until maturity. (The first payment is due in 19X4.)

a. Fill in the following table to reflect Sentry’s liabilities, assuming a March 31 year-end.

March 31




Current liabilities:

Current portion of long-term debt

Interest payable

Long-term liabilities:

Long-term debt

b. Assuming that interest is properly recorded at the end of each year, present the proper journal entry to record the last payment on April 1, 19X6.