Separating current and non current liab in loans and leases

Here is an example to illustrate the method in leasing:
Company A has a lease contract given below:

Machine cost -$500
Life of contract and machine- 5 years
Instalments – $130
Interest- 10%

IF INSTALMENT PAID IN ADVANCE:
Opening $500
Instalment ($130)
Interest $37(10%*500-130)
Closing $407
Split into:
Current – $130
Non Current(balance) -$277
Total- $407

IF INSTALMENT IN ARREARS DO TWO YEARS:
Opening $500
Interest $50 (10%*500)
Instalment ($130)
Closing $420
Opening $420
Interest $42 (10%*420)
Instalment ($130)
Closing $332
Split into:
Current(balance) – $88
Non Current -$332
Total- $420