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Amount to be reported as a current liability

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On September 1, 2008, a company borrowed $130,000 from its bank and signed a nine-month note with 5% interest. The principal and interest on the loan are to be paid when the note matures.

What is the total amount related to this loan that should be reported under current liabilities on the company's December 31, 2008, balance sheet?

$________

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The solution explains how to calculate the amount to be reported as a current liability on the balance sheet.

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Total amount would relate to the principal amount (since it will ...

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