1. Prepare the journal entry for American Food Services' purchase of the machine on January 1, 2024. 2. Prepare an amortization schedule for the four-year term of the installment note. 3. Prepare the journal entry for the first installment payment on December 31, 2024. 4. Prepare the journal entry for the third installment payment on December 31, 2026.

1. Prepare the journal entry for American Food Services' purchase of the machine on January 1, 2024. 2. Prepare an amortization schedule for the four-year term of the installment note. 3. Prepare the journal entry for the first installment payment on December 31, 2024. 4. Prepare the journal entry for the third installment payment on December 31, 2026.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

2. C-type Company receives $ 400,000 when it issues 6% mortgage note payable for 4 years to finance the construction of a building at December 31, 2020. The term provides for semiannual installment payment of 34,000 (including real estate tax and insurance $1900) on June 30 and December 31. Instructions: i. Prepare an installment payments schedule for the first 4 years. Prepare entries for the mortgage loan and first installment payment. Show the Balance sheet representation at December 31, 2020. ii. iii.
Sheridan Electronics issues a $376,500, 3%, 10-year mortgage note on December 31, 2021. The proceeds from the note are to be used in financing a new research laboratory. The terms of the note provide for annual installment payments, exclusive of real estate taxes and insurance, of $44,137. Payments are due on December 31. Prepare the entries for (1) the loan and (2) the first installment payment.
On June 1, 2023 Stanfield Tileworks accepts a $50,000, five month, 9% note from a customer. On November 1, 2023, Stanfield receives full payment for the note including accrued interest. Please provide the journal entry that results from this payment
Ss.236.
LCD Industries purchased a supply of electronic components from Entel Corporation on November 1, 2024. In payment for the $24.7 million purchase, LCD issued a 1-year installment note to be paid in equal monthly payments at the end of each month. The payments include interest at the rate of 24%. Required: 1. & 2. Prepare the journal entries for LCD’s purchase of the components on November 1, 2024 and the first installment payment on November 30, 2024. 3. What is the amount of interest expense that LCD will report in its income statement for the year ended December 31, 2024?
Tampa Roofing Company borrows P1,500,000 on December 31, 2021. Under the terms of the loan, Tampa Roofing Company is required to make three equal annual payments. The first payment will be made on December 31, 2022. As of December 31, 2023, how much should be recorded as noncurrent liabilities? O P1,500,000 O $500,000 O P1,000,000 O PO
Please answer both. This is part A and B
On November 30, 2018, EZ Products borrowed $48,000 on a 5%, 10-year note with annual installment payments of $4,800 plus interest due on November 30 of each succeeding year. How much interest expense should be accrued at December 31, 2018 for the period of November 30 through year-end? Select one: a. $200 b. $400 c. $2,400 d. $1,200
The following amortization schedule indicates the interest and principal that Chip's Cookie Corporation (CCC) must repay on an installment note established January 1, 2021. CCC has a December 31 year-end and makes the required annual payments on December 31. Year 1 2 3 4 Total Beginning Notes Payable 52,000 40,629 28, 235 14,725 Repaid Principal Interest Expense on Notes Payable (a) Annual Payment (b) Interest Expense (c) Notes Payable (d-1) Total Interest (d-2) Total Principal 4,680 3,657 2,541 1,325 12, 203 11,371 12,394 13,510 14,725 52,000 Ending Notes Payable 40,629 28,235 14,725 0 Use the amortization schedule to determine (a) the amount of the (rounded) annual payment; (b) the amount of interest expense to report in the year ended December 31, 2021 (Year 1); (c) the note payable balance at January 1, 2024; and (d) the total interest and total principal paid over the note's entire life. (Round your answers to the nearest whole dollar amount.)
14. Jindal Industries issues a $1,200,000, 10%, 10-year mortgage note on December 31, 2020, to obtain financing for a new building. The terms provide for semiannual installment payments of $96,290. Instructions: a) Prepare the entry to record the mortgage loan on December 31, 2020, and b) Prepare a schedule showing semiannual installment payment for 2021.
LCD Industries purchased a supply of electronic components from Entel Corporation on November 1, 2024. In payment for the $24.8 million purchase, LCD issued a 1-year installment note to be paid in equal monthly payments at the end of each month. The payments include interest at the rate of 12%. Required: 1. & 2. Prepare the journal entries for LCD's purchase of the components on November 1, 2024 and the first installment payment on November 30, 2024. 3. What is the amount of interest expense that LCD will report in its income statement for the year ended December 31, 2024?
Ll.102.