On the 30 June 2022, Darwin Ltd borrowed $300,000from NT bank. The interest on the...
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Accounting
On the 30 June 2022, Darwin Ltd borrowed $300,000from NT bank. The interest on the loan will be 5% per annum. Darwin Ltd will be required to pay the pay the bank $45,000 over the next year (this includes principal and interest). Required: (i)Prepare the journal entry for the loan on the 30 June 2022 (dates and narrations not required).
(ii)When preparing the balance sheet for the 30 June 2022, what amount of the loan will be classified as a current liability? (iii)When preparing the balance sheet for the 30 June 2022, what amount of the loan will be classified as a non- current liability?
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