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A company decides to obtain a small-business loan of $200,000. The financial institution from which the company borrows offers two options: a. Borrow $200,000 at 6% with monthly payments of $3,866.56 over 5 years. b. Borrow $200,000 at 7% with monthly payments of $2,322.17 over 10 years. Required: 1. Record the issuance of an installment note payable under each option. 2. Record the payments for the first and second month under each option. 3. Determine the total amount of interest paid under each option over the full period of the note. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Record the payments for the first and second month under each option. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations. Round your answers to 2 decimal places.)

A company decides to obtain a small-business loan of $200,000. The financial institution from which the company borrows offers two options: a. Borrow $200,000 at 6% with monthly payments of $3,866.56 over 5 years. b. Borrow $200,000 at 7% with monthly payments of $2,322.17 over 10 years. Required: 1. Record the issuance of an installment note payable under each option. 2. Record the payments for the first and second month under each option. 3. Determine the total amount of interest paid under each option over the full period of the note. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Record the payments for the first and second month under each option. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations. Round your answers to 2 decimal places.)

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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A company decides to obtain a small-business loan of $200,000. The financial institution from which the company borrows offers two options: a. Borrow $200,000 at 6% with monthly payments of $3,866.56 over 5 years. b. Borrow $200,000 at 7% with monthly payments of $2,322.17 over 10 years. Required: 1. Record the issuance of an installment note payable under each option. 2. Record the payments for the first and second month under each option. 3. Determine the total amount of interest paid under each option over the full period of the note. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Record the payments for the first and second month under each option. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations. Round your answers to 2 decimal places.) View transaction list Journal entry worksheet Record the first payment of a note for $200,000 at 6% with monthly payments. of $3,866.56 over 5 years. Note: Enter debits before credits. Transaction 1a Show Transcribed Text General Journal A company decides to obtain a small-business loan of $200,000. The financial institution from which the company borrows offers two options: Complete this question by entering your answers in the tabs below. View transaction list a. Borrow $200,000 at 6% with monthly payments of $3,866.56 over 5 years. b. Borrow $200,000 at 7% with monthly payments of $2,322.17 over 10 years. Required: 1. Record the issuance of an installment note payable under each option. 2. Record the payments for the first and second month under each option. 3. Determine the total amount of interest paid under each option over the full period of the note. Debit Journal entry worksheet < 2 Required 1 Required 2 Required 3 Record the payments for the first and second month under each option. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations. Round your answers to 2 decimal places.) Note: Enter debits before credits. Transaction 1b Record the second payment of a note for $200,000 at 6% with monthly payments of $3,866.56 over 5 years. Notes Payable Interest Expense Credit General Journal S Debit 985.67 2,881.00 Credit
Transcribed Image Text:A company decides to obtain a small-business loan of $200,000. The financial institution from which the company borrows offers two options: a. Borrow $200,000 at 6% with monthly payments of $3,866.56 over 5 years. b. Borrow $200,000 at 7% with monthly payments of $2,322.17 over 10 years. Required: 1. Record the issuance of an installment note payable under each option. 2. Record the payments for the first and second month under each option. 3. Determine the total amount of interest paid under each option over the full period of the note. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Record the payments for the first and second month under each option. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations. Round your answers to 2 decimal places.) View transaction list Journal entry worksheet Record the first payment of a note for $200,000 at 6% with monthly payments. of $3,866.56 over 5 years. Note: Enter debits before credits. Transaction 1a Show Transcribed Text General Journal A company decides to obtain a small-business loan of $200,000. The financial institution from which the company borrows offers two options: Complete this question by entering your answers in the tabs below. View transaction list a. Borrow $200,000 at 6% with monthly payments of $3,866.56 over 5 years. b. Borrow $200,000 at 7% with monthly payments of $2,322.17 over 10 years. Required: 1. Record the issuance of an installment note payable under each option. 2. Record the payments for the first and second month under each option. 3. Determine the total amount of interest paid under each option over the full period of the note. Debit Journal entry worksheet < 2 Required 1 Required 2 Required 3 Record the payments for the first and second month under each option. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations. Round your answers to 2 decimal places.) Note: Enter debits before credits. Transaction 1b Record the second payment of a note for $200,000 at 6% with monthly payments of $3,866.56 over 5 years. Notes Payable Interest Expense Credit General Journal S Debit 985.67 2,881.00 Credit
Required 2 Required 3 Record the payments for the first and second month under each option. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations. Round your answers to 2 decimal places.) Required 1 View transaction list Journal entry worksheet < Record the first payment of a note for $200,000 at 7% with monthly payments of $2,322.17 over 10 years. Note: Enter debits before credits. Transaction 2a 3 Show Transcribed Text Notes Payable Interest Expense Required 1 View transaction list General Journal Complete this question by entering your answers in the tabs below. A company decides to obtain a small-business loan of $200,000. The financial institution from which the company borrows offers two options: a. Borrow $200,000 at 6% with monthly payments of $3,866.56 over 5 years. b. Borrow $200,000 at 7% with monthly payments of $2,322.17 over 10 years. Required: 1. Record the issuance of an installment note payable under each option. 2. Record the payments for the first and second month under each option. 3. Determine the total amount of interest paid under each option over the full period of the note. Journal entry worksheet Transaction 2b Debit Note: Enter debits before credits. 1,166.67 1,155.50 Required 2 Required 3 Record the payments for the first and second month under each option. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations. Round your answers to 2 decimal places.) Record the second payment of a note for $200,000 at 7% with monthly payments of $2,322.17 over 10 years. Notes Payable Interest Expense General Journal Credit c Debit 1,159.93 1,162.00 > Credit
Transcribed Image Text:Required 2 Required 3 Record the payments for the first and second month under each option. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations. Round your answers to 2 decimal places.) Required 1 View transaction list Journal entry worksheet < Record the first payment of a note for $200,000 at 7% with monthly payments of $2,322.17 over 10 years. Note: Enter debits before credits. Transaction 2a 3 Show Transcribed Text Notes Payable Interest Expense Required 1 View transaction list General Journal Complete this question by entering your answers in the tabs below. A company decides to obtain a small-business loan of $200,000. The financial institution from which the company borrows offers two options: a. Borrow $200,000 at 6% with monthly payments of $3,866.56 over 5 years. b. Borrow $200,000 at 7% with monthly payments of $2,322.17 over 10 years. Required: 1. Record the issuance of an installment note payable under each option. 2. Record the payments for the first and second month under each option. 3. Determine the total amount of interest paid under each option over the full period of the note. Journal entry worksheet Transaction 2b Debit Note: Enter debits before credits. 1,166.67 1,155.50 Required 2 Required 3 Record the payments for the first and second month under each option. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations. Round your answers to 2 decimal places.) Record the second payment of a note for $200,000 at 7% with monthly payments of $2,322.17 over 10 years. Notes Payable Interest Expense General Journal Credit c Debit 1,159.93 1,162.00 > Credit
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