Culver purchased a new piece of equipment to be used in its new facility. The $378,000 piece of equipment was purchased with a $53,000 down payment and with cash received through the issuance of a $325,000, 9%, 5-year mortgage payable issued on January 1, 2022. The terms provide for annual installment payments of $83,555 on December 31. (a) Prepare an installment payments schedule for the five payments of the notes payable. (Round answers to 0 decimal places, e.g. 15,250.) Your answer is correct. Annual Interest Period Issue Date 1 2 Cash Payment 83,555 83.555 83,555 Interest Expense 29,250 24,363 19,035 Reduction of Principal 54,305 59,192 64,520 Principal Bal
Culver purchased a new piece of equipment to be used in its new facility. The $378,000 piece of equipment was purchased with a $53,000 down payment and with cash received through the issuance of a $325,000, 9%, 5-year mortgage payable issued on January 1, 2022. The terms provide for annual installment payments of $83,555 on December 31. (a) Prepare an installment payments schedule for the five payments of the notes payable. (Round answers to 0 decimal places, e.g. 15,250.) Your answer is correct. Annual Interest Period Issue Date 1 2 Cash Payment 83,555 83.555 83,555 Interest Expense 29,250 24,363 19,035 Reduction of Principal 54,305 59,192 64,520 Principal Bal
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable
Section: Chapter Questions
Problem 14RE: On January 1, 2019, Boater Company issues a 20,000 non-interest-bearing, 5-year note for equipment....
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Tt.8.
![E
(b)
Your answer is partially correct.
Prepare the journal entry related to the notes payable for December 31, 2022. (Credit account titles are automatically indented when
amount is entered. Do not indent manually. Record journal entries in the order presented in the problem)
Account Titles and Explanation
Date
Dec. 31,
2021
interest Expense
Notes Payable
Current Liabilities
Cash
Long-term Liabilities
Debit
Culver
Balance Sheet
29,250
54,305
Show the balance sheet presentation for this obligation for December 31, 2022. (Hint: Be sure to distinguish between the current
and long-term portions of the note.) (Enter account name only and do not provide descriptive information)
Credit
83555](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5b0aaa1d-1b6b-4e3e-88ff-1742e6c9fb7c%2F6a4e40f2-a95c-42f9-b20b-5c368686b238%2Fi4h11fw_processed.jpeg&w=3840&q=75)
Transcribed Image Text:E
(b)
Your answer is partially correct.
Prepare the journal entry related to the notes payable for December 31, 2022. (Credit account titles are automatically indented when
amount is entered. Do not indent manually. Record journal entries in the order presented in the problem)
Account Titles and Explanation
Date
Dec. 31,
2021
interest Expense
Notes Payable
Current Liabilities
Cash
Long-term Liabilities
Debit
Culver
Balance Sheet
29,250
54,305
Show the balance sheet presentation for this obligation for December 31, 2022. (Hint: Be sure to distinguish between the current
and long-term portions of the note.) (Enter account name only and do not provide descriptive information)
Credit
83555
![Culver purchased a new piece of equipment to be used in its new facility. The $378,000 piece of equipment was purchased with a
$53,000 down payment and with cash received through the issuance of a $325,000, 9%, 5-year mortgage payable issued on January 1,
2022. The terms provide for annual installment payments of $83,555 on December 31.
(a)
Prepare an installment payments schedule for the five payments of the notes payable. (Round answers to O decimal places, e.g.
15,250.)
Annual
Interest
Period
Issue
Date
1
Your answer is correct.
2
3
لیا
Cash Payment
83,555
83,555
83,555
$
Interest Expense
29,250
24,363
19,035
Reduction of Principal
54,305
59.192
64,520
Principal Bal.
III](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5b0aaa1d-1b6b-4e3e-88ff-1742e6c9fb7c%2F6a4e40f2-a95c-42f9-b20b-5c368686b238%2F57cpdu4_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Culver purchased a new piece of equipment to be used in its new facility. The $378,000 piece of equipment was purchased with a
$53,000 down payment and with cash received through the issuance of a $325,000, 9%, 5-year mortgage payable issued on January 1,
2022. The terms provide for annual installment payments of $83,555 on December 31.
(a)
Prepare an installment payments schedule for the five payments of the notes payable. (Round answers to O decimal places, e.g.
15,250.)
Annual
Interest
Period
Issue
Date
1
Your answer is correct.
2
3
لیا
Cash Payment
83,555
83,555
83,555
$
Interest Expense
29,250
24,363
19,035
Reduction of Principal
54,305
59.192
64,520
Principal Bal.
III
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