$14-1 Accounting for a long-term note payable On January 1, 2018, Lakeman-Fay signed a $1,500,000, 15-year, 7% note. The loan required Lakeman-Fay to make annual payments on December 31 of $100,000 principal plus interest. Requirements 1. Journalize the issuance of the note on January 1, 2018. 2. Journalize the first note payment on December 31, 2018.
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- Entries for Installment Note Transactions On January 1, Year 1, Wedekind Company issued a $26,000, 4-year, 12% installment note to Shannon Bank. The note requires annual payments of $8,560, beginning on December 31, Year 1. Journalize the entries to record the following: Year 1 Jan. 1 Issued the note for cash at its face amount. Dec. 31 Paid the annual payment on the note, which consisted of interest of $3,120 and principal of $5,440. Year 4 Dec. 31 Paid the annual payment on the note, including $917 of interest. The remainder of the payment reduced the principal balance on the note. Issued the note for cash at its face amount. If an amount box does not require an entry, leave it blank. Year 1, Jan. 1 Paid the annual payment on the note, which consisted of interest of $3,120 and principal of $5,440. If an amount box does not require an entry, leave it blank. Year 1, Dec. 31 10:2A $4,800, 180-day non-interest bearing promissory note issued May 9 is discounted on August 23 at 4%. Find the amount of discount and the proceeds of the note.How to journalize the issuance of the note on january 1 2024
- Dandy Candy bought a delivery vehicle for $45,000 by issuing an 8% installment note on January 1, 2021. Dandy will make 12 monthly payments of $3,914.50 at the end of each month. Period Cash Payment (Credit) Interest Expense (Debit) Reduction of Note Payalbe (Debit)) Note Payable Balance At issue --- --- --- $45,000 01/31/21 $3,914.50 $300.00 $3,614.50 41,385.50 02/28/21 3,914.50 ? ? ? 03/31/21 3,914.50 ? ? ? 04/30/21 3,914.50 ? ? ? 05/31/21 3,914.50 ? 3,711.85 26,684.93 Required: Using the partially completed amortization table above, prepare the journal entries for the end of March and the end of April. Round your answers to the nearest cent. 2021 Mar. 31 Interest Expense fill in the blank 2 fill in the blank 3 Notes Payable fill in the blank 5 fill in the blank 6 Cash fill in the blank 8 fill in the blank 9 Record monthly payment Apr. 30 Interest Expense fill in the blank 11 fill in the blank 12 Notes Payable fill in the…Journalizing Installment Notes On the first day of the fiscal year, a company issues $35,000, 5%, eight-year installment notes that have annual payments of $5,415, The first note payment consists of $1,750 of interest and $3,665 of principal repayment. a. Journalize the entry to record the issuance of the installment notes. If an anmount box does not require an entry, leave it blank. b. Journalize the first annual note payment. If an amount box does not require an entry, leave it blank.Entries for Installment Note Transactions On January 1, Year 1, Wedekind Company issued a $58,000, 4-year, 10% installment note to Shannon Bank. The note requires annual payments of $18,297, beginning on December 31, Year 1. Journalize the entries to record the following: Year 1 Jan. 1 Issued the note for cash at its face amount. Dec. 31 Paid the annual payment on the note, which consisted of interest of $5,800 and principal of $12,497. Year 4 Dec. 31 Paid the annual payment on the note, including $1,664 of interest. The remainder of the payment reduced the principal balance on the note. Issued the note for cash at its face amount. If an amount box does not require an entry, leave it blank. Year 1, Jan. 1 - Select - - Select - - Select - - Select - Paid the annual payment on the note, which consisted of interest of $5,800 and principal of $12,497. If an amount box does not require an entry, leave it blank. Year 1, Dec. 31 -…
- Issued, On January 01, 2010, a four-year note to ABC Bank. Face value of note is $40,000. It is a 5% note discounted at 8%. 2A). A journal entry for the issuance of the note on January 01, 2010. 2B). A journal entry for interest accrued on December 31, 2010. 2C). A journal entry for interest accrued on December 31, 2011. 2D). A journal entry for interest accrued on December 31, 2012. 2E). A journal entry for interest accrued on December 31, 2013. 2F). A journal entry for payment of the interest on December 31, 2013. 2G). A journal entry for payment of the note to XYZ Bank on December 31, 2013. Don't give answer in image formatOn the first day of the fiscal year, Shiller Company borrowed $32,000 by giving a 5-year, 11% installment note to Soros Bank. The note requires annual payments of $8,783, with the first payment occurring on the last day of the fiscal year. The first payment consists of interest of $3,520 and principal repayment of $5,263. Journalize the entries to record the following: Question Content Area a1. Issued the installment note for cash on the first day of the fiscal year. If an amount box does not require an entry, leave it blank. blank Account Debit Credit blank Question Content Area a2. Paid the first annual payment on the note. If an amount box does not require an entry, leave it blank. blank Account Debit Credit blankWest County Bank agrees to lend Wildhorse Co. $472000 on January 1. Wildhorse Co. signs a $472000, 6%, 6-month note. What entry will Wildhorse Co. make to pay off the note and interest at maturity assuming that interest has been accrued to June 30? Notes Payable 486160 Cash 486160 Interest Payable 7080 Notes Payable 472000 Interest Expense 7080 Cash 486160 Notes Payable 472000 Interest Payable 14160 Cash 486160 Interest Expense 14160 Notes Payable 472000 Cash 486160
- On the first day of the fiscal year, a company issues $32,000, 11%, five-year installment notes that have annual payments of $8,658. The first note payment consists of $3,520 of interest and $5,138 of principal repayment. Question Content Area a. Journalize the entry to record the issuance of the installment notes. If an amount box does not require an entry, leave it blank. blank - Select - - Select - - Select - - Select - Question Content Area b. Journalize the first annual note payment. If an amount box does not require an entry, leave it blank. blank - Select - - Select - - Select - - Select - - Select - - Select - Adieu Company reported the following current assets and current liabilities for two recent years: Dec. 31, 20Y4 Dec. 31, 20Y3 Cash $1,020 $960 Temporary investments 1,200 1,400 Accounts receivable 820 940 Inventory 2,200 2,600 Accounts payable 1,900 2,200 a.…Entity O signed a five-month note payable in the amount of $18,000 on November 1 with principal and interest payable at maturity. The note requires interest at an annual rate of 8%. The amount of interest expense Entity O must recognize at December 31 is: $120 $240 $600 $1,400 O OEntries for Installment Note Transactions On January 1, Year 1, Bryson Company obtained a $55,000, four-year, 11% installment note from Campbell Bank. The note requires annual payments of $17,728, beginning on December 31, Year 1. Question Content Area a. Prepare an amortization table for this installment note, similar to the one presented in Exhibit 4. Note: Enter all amounts to the nearest whole dollar. Round Year 4 Interest Expense (up or down) to ensure the carrying amount is zero at the end of the note term. Amortization of Installment Notes Year EndingDecember 31 January 1Carrying Amount Note Payment(Cash Paid) Interest Expense(7% of January 1Note CarryingAmount) Decrease inNotes Payable December 31Carrying Amount Year 1 $fill in the blank b149b9fd0071019_1 $fill in the blank b149b9fd0071019_2 $fill in the blank b149b9fd0071019_3 $fill in the blank b149b9fd0071019_4 $fill in the blank b149b9fd0071019_5 Year 2 fill in the blank b149b9fd0071019_6…