Notes PayableOn October 2, 2020, a company borrowed cash and signed a 3-year, interest-bearing note on which both the principal and interest arepayable on October 2, 2023. At December 31, 2022, the principal and accrued interest should:Oa, be reported on the balance sheet as current liabilitiesXO b. be reported on the balance sheet as long-term notes payablec. not be reported on the balance sheet as liabilitiesO d. be reported on the balance sheet as noncurrent liabilities

Current liabilites are finanical obligations that are short term in nature. They are due within one…

ayable ber 2, 2020, a company borrowed cash and sign on October 2, 2023. At December 31, 2022, the be reported on the balance sheet as current liabilities be reported on the balance sheet as long-term notes paya not be reported on the balance sheet as liabilities be reported on the balance sheet as noncurrent liabilities

ayable ber 2, 2020, a company borrowed cash and sign on October 2, 2023. At December 31, 2022, the be reported on the balance sheet as current liabilities be reported on the balance sheet as long-term notes paya not be reported on the balance sheet as liabilities be reported on the balance sheet as noncurrent liabilities

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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The following amortization schedule indicates the interest and principal to be repaid on an installment note established January 1, 2021, for a company with a March 31 fiscal year-end. Period 1/1-12/31, Year 1 Interest Expense on Notes Payable $ 560 424 #TITT 286 144 1,414 1/1-12/31, Year 2 1/1-12/31, Year 3 1/1-12/31, Year 4 Total Beginning Notes Payable $ 28,000 21, 207 14, 278 Repaid Principal Ending Notes 7,210 $ 6,793 6,929 7,068 7,210 28,000 Payable $ 21,207 14,278 7,210 Required: 1. Assuming the company makes the required annual payments on December 31, 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 March 31, 2021; (c) the amount of Interest Expense to report in the year ended March 31, 2022; (d) the Notes Payable balance at January 1, 2024; and (e) the total interest and total principal paid over the note's entire life 2. Assuming the company makes adjustments at the end…
17,18,19 and 20
Prepare the journal entry to record the payment of interest and the discount amortization on December 31, 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Dec. 31, Interest Expense 2022 Discount on Bonds Payable Cash Debit 27300 240 Credit 27060
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