eBook Show Me How Print Item Entries for Installment Note Transactions On January 1, Year 1, Bryson Company obtained a $33,000, four-year, 8% installment note from Campbell Bank. The note requires annual payments of $9,963, beginning on December 31, Year 1. a. Prepare an amortization table for this installment note, similar to the one presented in Exhibit 4. Round the computation of the interest expense to the nearest whole dollar. Enter all amounts as positive numbers. In Year 4, round the amount in the Decrease in Notes Payable column either up or down to ensure that the Carrying Amount zeroes out. Amortization of Installment Notes Year Ending December 31 January 1 Carrying Amount Note Payment (Cash Paid) Interest Expense (8% of January 1 Note Carrying Amount) Decrease in Notes Payable December 31 Carrying Amount Year 1 $fill in the blank 48290e03c056fd2_1 $fill in the blank 48290e03c056fd2_2 $fill in the blank 48290e03c056fd2_3 $fill in the blank 48290e03c056fd2_4 $fill in the blank 48290e03c056fd2_5 Year 2 fill in the blank 48290e03c056fd2_6 fill in the blank 48290e03c056fd2_7 fill in the blank 48290e03c056fd2_8 fill in the blank 48290e03c056fd2_9 fill in the blank 48290e03c056fd2_10 Year 3 fill in the blank 48290e03c056fd2_11 fill in the blank 48290e03c056fd2_12 fill in the blank 48290e03c056fd2_13 fill in the blank 48290e03c056fd2_14 fill in the blank 48290e03c056fd2_15 Year 4 fill in the blank 48290e03c056fd2_16 fill in the blank 48290e03c056fd2_17 fill in the blank 48290e03c056fd2_18 fill in the blank 48290e03c056fd2_19 — $fill in the blank 48290e03c056fd2_20 $fill in the blank 48290e03c056fd2_21 $fill in the blank 48290e03c056fd2_22 b. Journalize the entries for the issuance of the note and the four annual note payments. Note: If an amount box does not require an entry, leave it blank. For the Year 4 entry (due to rounding), adjust Notes Payable up or down to ensure that debits equal credits. Year 1 Jan. 1 - Select - - Select - - Select - - Select - Year 1 Dec. 31 - Select - - Select - - Select - - Select - - Select - - Select - Year 2 Dec. 31 - Select - - Select - - Select - - Select - - Select - - Select - Year 3 Dec. 31 - Select - - Select - - Select - - Select - - Select - - Select - Year 4 Dec. 31 - Select - - Select - - Select - - Select - - Select - - Select - c. How will the annual note payment be reported in the Year 1 income statement? of $fill in the blank c79cee05d065f92_2 would be reported on the income statement.

eBook Show Me How Print Item Entries for Installment Note Transactions On January 1, Year 1, Bryson Company obtained a $33,000, four-year, 8% installment note from Campbell Bank. The note requires annual payments of $9,963, beginning on December 31, Year 1. a. Prepare an amortization table for this installment note, similar to the one presented in Exhibit 4. Round the computation of the interest expense to the nearest whole dollar. Enter all amounts as positive numbers. In Year 4, round the amount in the Decrease in Notes Payable column either up or down to ensure that the Carrying Amount zeroes out. Amortization of Installment Notes Year Ending December 31 January 1 Carrying Amount Note Payment (Cash Paid) Interest Expense (8% of January 1 Note Carrying Amount) Decrease in Notes Payable December 31 Carrying Amount Year 1 $fill in the blank 48290e03c056fd2_1 $fill in the blank 48290e03c056fd2_2 $fill in the blank 48290e03c056fd2_3 $fill in the blank 48290e03c056fd2_4 $fill in the blank 48290e03c056fd2_5 Year 2 fill in the blank 48290e03c056fd2_6 fill in the blank 48290e03c056fd2_7 fill in the blank 48290e03c056fd2_8 fill in the blank 48290e03c056fd2_9 fill in the blank 48290e03c056fd2_10 Year 3 fill in the blank 48290e03c056fd2_11 fill in the blank 48290e03c056fd2_12 fill in the blank 48290e03c056fd2_13 fill in the blank 48290e03c056fd2_14 fill in the blank 48290e03c056fd2_15 Year 4 fill in the blank 48290e03c056fd2_16 fill in the blank 48290e03c056fd2_17 fill in the blank 48290e03c056fd2_18 fill in the blank 48290e03c056fd2_19 — $fill in the blank 48290e03c056fd2_20 $fill in the blank 48290e03c056fd2_21 $fill in the blank 48290e03c056fd2_22 b. Journalize the entries for the issuance of the note and the four annual note payments. Note: If an amount box does not require an entry, leave it blank. For the Year 4 entry (due to rounding), adjust Notes Payable up or down to ensure that debits equal credits. Year 1 Jan. 1 - Select - - Select - - Select - - Select - Year 1 Dec. 31 - Select - - Select - - Select - - Select - - Select - - Select - Year 2 Dec. 31 - Select - - Select - - Select - - Select - - Select - - Select - Year 3 Dec. 31 - Select - - Select - - Select - - Select - - Select - - Select - Year 4 Dec. 31 - Select - - Select - - Select - - Select - - Select - - Select - c. How will the annual note payment be reported in the Year 1 income statement? of $fill in the blank c79cee05d065f92_2 would be reported on the income statement.

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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Entries for Installment Note Transactions

On January 1, Year 1, Bryson Company obtained a $33,000, four-year, 8% installment note from Campbell Bank. The note requires annual payments of $9,963, beginning on December 31, Year 1.

a. Prepare an amortization table for this installment note, similar to the one presented in Exhibit 4. Round the computation of the interest expense to the nearest whole dollar. Enter all amounts as positive numbers. In Year 4, round the amount in the Decrease in Notes Payable column either up or down to ensure that the Carrying Amount zeroes out.

Amortization of Installment Notes
Year Ending December 31	January 1 Carrying Amount	Note Payment (Cash Paid)	Interest Expense (8% of January 1 Note Carrying Amount)	Decrease in Notes Payable	December 31 Carrying Amount
Year 1		$fill in the blank 48290e03c056fd2_1		$fill in the blank 48290e03c056fd2_2		$fill in the blank 48290e03c056fd2_3	$fill in the blank 48290e03c056fd2_4	$fill in the blank 48290e03c056fd2_5
Year 2		fill in the blank 48290e03c056fd2_6		fill in the blank 48290e03c056fd2_7		fill in the blank 48290e03c056fd2_8	fill in the blank 48290e03c056fd2_9	fill in the blank 48290e03c056fd2_10
Year 3		fill in the blank 48290e03c056fd2_11		fill in the blank 48290e03c056fd2_12		fill in the blank 48290e03c056fd2_13	fill in the blank 48290e03c056fd2_14	fill in the blank 48290e03c056fd2_15
Year 4		fill in the blank 48290e03c056fd2_16		fill in the blank 48290e03c056fd2_17		fill in the blank 48290e03c056fd2_18	fill in the blank 48290e03c056fd2_19	—
				$fill in the blank 48290e03c056fd2_20		$fill in the blank 48290e03c056fd2_21	$fill in the blank 48290e03c056fd2_22

b. Journalize the entries for the issuance of the note and the four annual note payments.

Note: If an amount box does not require an entry, leave it blank. For the Year 4 entry (due to rounding), adjust Notes Payable up or down to ensure that debits equal credits.

Year 1 Jan. 1	- Select -	- Select -
	- Select -	- Select -
Year 1 Dec. 31	- Select -	- Select -
	- Select -	- Select -
	- Select -	- Select -
Year 2 Dec. 31	- Select -	- Select -
	- Select -	- Select -
	- Select -	- Select -
Year 3 Dec. 31	- Select -	- Select -
	- Select -	- Select -
	- Select -	- Select -
Year 4 Dec. 31	- Select -	- Select -
	- Select -	- Select -
	- Select -	- Select -