Access an online loan calculator with annual payments, such as the one at mycalculators.com, to produce an amortization schedule for Welton Corporation's installment note that has original principal of $26,000, interest of 5% compounded annually, and a term of 3 years. Welton Corporation established the note on the first day of its fiscal year and will fully repay the note by the end of year 3 on its December 31 fiscal year-end. Prepare Welton Corporation's journal entries on (a) January 1, Year 1; (b) December 31, Year 1; (c) December 31, Year 2; and (d) December 31, Year 3. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations. Round your final answers to the nearest dollar amount.) No 1 2 3 4 Transaction (a) (b) (c) (d) Cash Notes Payable (long-term) General Journal Interest Expense Notes Payable (long-term) Cash Interest Expense Notes Payable (long-term) Cash Interest Expense Answer is not complete. Notes Payable (long-term) Cash ›› 333 ››› ✓ ✓ ››› Debit 26,000 1,300 1,300 x 904 X 488 X Credit 26,000 1,300 x 904 X 904 X 488 488 x
Access an online loan calculator with annual payments, such as the one at mycalculators.com, to produce an amortization schedule for Welton Corporation's installment note that has original principal of $26,000, interest of 5% compounded annually, and a term of 3 years. Welton Corporation established the note on the first day of its fiscal year and will fully repay the note by the end of year 3 on its December 31 fiscal year-end. Prepare Welton Corporation's journal entries on (a) January 1, Year 1; (b) December 31, Year 1; (c) December 31, Year 2; and (d) December 31, Year 3. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations. Round your final answers to the nearest dollar amount.) No 1 2 3 4 Transaction (a) (b) (c) (d) Cash Notes Payable (long-term) General Journal Interest Expense Notes Payable (long-term) Cash Interest Expense Notes Payable (long-term) Cash Interest Expense Answer is not complete. Notes Payable (long-term) Cash ›› 333 ››› ✓ ✓ ››› Debit 26,000 1,300 1,300 x 904 X 488 X Credit 26,000 1,300 x 904 X 904 X 488 488 x
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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2
Transcribed Image Text:Access an online loan calculator with annual payments, such as the one at mycalculators.com, to produce an amortization schedule for
Welton Corporation's installment note that has original principal of $26,000, interest of 5% compounded annually, and a term of 3
years.
Welton Corporation established the note on the first day of its fiscal year and will fully repay the note by the end of year 3 on its
December 31 fiscal year-end. Prepare Welton Corporation's journal entries on (a) January 1, Year 1; (b) December 31, Year 1;
(c) December 31, Year 2; and (d) December 31, Year 3. (If no entry is required for a transaction/event, select "No Journal Entry
Required" in the first account field. Do not round intermediate calculations. Round your final answers to the nearest dollar
amount.)
No
1
2
3
4
Transaction
(a)
(b)
(d)
X Answer is not complete.
General Journal
Cash
Notes Payable (long-term)
Interest Expense
Notes Payable (long-term)
Cash
Interest Expense
Interest Expense
Notes Payable (long-term)
Cash
Notes Payable (long-term)
Cash
Debit
26,000
1,300
1,300
904
488 x
Credit
26,000
1,300
904 X
904 X
488 x
488
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