Answer and Explanation:
The Preparation of note disclosure for the long-term debt is shown below:-
Note disclosure for the long-term debt
At the year end 31, December 2020
Year Amount Working note
2021 0
2022 $2,752,000 From annual sinking fund payment
2023 $4,562,000 ($1,810,000 annual sinking fund payment + $2,752,000 note payable maturity)
2024 $7,582,000 ($4,830,000 annual sinking fund payment + $2,752,000 bond maturity)
2025 $2,752,000 From annual sinking fund payment
