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2 3 On 1/1/19, Lantana Loan Co., a calendar-year company, accepts a 5%, $500,000 three-year loan that pays interest semi-annually on 6/30 and 12/31 from Diamond Distributors, when the market rate of interest was 10%. In exchange for the note, Diamond agrees to make semi-annual interest payments and repay the full $500,000 at maturity. Complete the amortization table for this note, then complete all journal entries for 2019. 45 6 7 Amortization Table: 8 9 Interest Effective Discount Note 10 Date Received Interest Amortized Balance 11 12 12

2 3 On 1/1/19, Lantana Loan Co., a calendar-year company, accepts a 5%, $500,000 three-year loan that pays interest semi-annually on 6/30 and 12/31 from Diamond Distributors, when the market rate of interest was 10%. In exchange for the note, Diamond agrees to make semi-annual interest payments and repay the full $500,000 at maturity. Complete the amortization table for this note, then complete all journal entries for 2019. 45 6 7 Amortization Table: 8 9 Interest Effective Discount Note 10 Date Received Interest Amortized Balance 11 12 12

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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2 3 On 1/1/19, Lantana Loan Co., a calendar-year company, accepts a 5%, $500,000 three-year loan that pays interest semi-annually on 6/30 and 12/31 from Diamond Distributors, when the market rate of interest was 10%. In exchange for the note, Diamond agrees to make semi-annual interest payments and repay the full $500,000 at maturity. Complete the amortization table for this note, then complete all journal entries for 2019. 45 6 7 Amortization Table: 8 9 Interest Effective Discount Note 10 Date Received Interest Amortized Balance 11 12 12
Transcribed Image Text:2 3 On 1/1/19, Lantana Loan Co., a calendar-year company, accepts a 5%, $500,000 three-year loan that pays interest semi-annually on 6/30 and 12/31 from Diamond Distributors, when the market rate of interest was 10%. In exchange for the note, Diamond agrees to make semi-annual interest payments and repay the full $500,000 at maturity. Complete the amortization table for this note, then complete all journal entries for 2019. 45 6 7 Amortization Table: 8 9 Interest Effective Discount Note 10 Date Received Interest Amortized Balance 11 12 12
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