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Computing Installment Payment on Note Payable On January 1, 2020, a borrower signed a long-term note, face amount $75,000 with time to maturity of 6 years. The interest rate is 7% and equal annual installment payments will pay off the loan after six years.  a. How much is each annual installment payment?   Note: Do not use a negative sign with your answer. Note: Round your answer to the nearest whole dollar.   $Answer  b. Record the first installment payment on December 31, 2020.   Note: Round your answers to the nearest whole dollar. Note: List multiple debits or credits (when applicable) in alphabetical order.   Date Account Name Dr. Cr. Dec. 31, 2020 Answer Answer Answer   Answer Answer Answer   Answer Answer Answer

Computing Installment Payment on Note Payable On January 1, 2020, a borrower signed a long-term note, face amount $75,000 with time to maturity of 6 years. The interest rate is 7% and equal annual installment payments will pay off the loan after six years.  a. How much is each annual installment payment?   Note: Do not use a negative sign with your answer. Note: Round your answer to the nearest whole dollar.   $Answer  b. Record the first installment payment on December 31, 2020.   Note: Round your answers to the nearest whole dollar. Note: List multiple debits or credits (when applicable) in alphabetical order.   Date Account Name Dr. Cr. Dec. 31, 2020 Answer Answer Answer   Answer Answer Answer   Answer Answer Answer

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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Computing Installment Payment on Note Payable

On January 1, 2020, a borrower signed a long-term note, face amount $75,000 with time to maturity of 6 years. The interest rate is 7% and equal annual installment payments will pay off the loan after six years. 

a. How much is each annual installment payment?

 

  • Note: Do not use a negative sign with your answer.
  • Note: Round your answer to the nearest whole dollar.

 

$Answer 

b. Record the first installment payment on December 31, 2020.

 

  • Note: Round your answers to the nearest whole dollar.
  • Note: List multiple debits or credits (when applicable) in alphabetical order.

 

Date Account Name Dr. Cr.
Dec. 31, 2020 Answer Answer Answer
  Answer Answer Answer
  Answer Answer Answer
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