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 Note: 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 Year 1 Year 2 Year 3 Year 4 Interest Expense (800 of January 1 Note Carrying Amount) December 31 Carrying Amount Decrease in January 1 Carrying Amount Note Payment (Cash Paid) Notes Payable 9,963 9,963 9,963 9,963 39,852 2,640 2,054 1,421 738 6,853 33,000 25,677 17,768 9,226 7,323 7,909 8,542 9,926 33,700 25,677 17,768 9,226 0 b. Journalize the entries for the issuance of the note and the four annual note payments
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 Note: 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 Year 1 Year 2 Year 3 Year 4 Interest Expense (800 of January 1 Note Carrying Amount) December 31 Carrying Amount Decrease in January 1 Carrying Amount Note Payment (Cash Paid) Notes Payable 9,963 9,963 9,963 9,963 39,852 2,640 2,054 1,421 738 6,853 33,000 25,677 17,768 9,226 7,323 7,909 8,542 9,926 33,700 25,677 17,768 9,226 0 b. Journalize the entries for the issuance of the note and the four annual note payments
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Hi I'm stuck on this problem. My numbers aren't adding up and I'm completely lost because I have redone it and still running into the same issue. Can you please help? Thanks!
Transcribed Image Text: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
Note: 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
Year 1
Year 2
Year 3
Year 4
Interest Expense
(800 of January 1
Note Carrying
Amount)
December 31
Carrying
Amount
Decrease in
January 1
Carrying Amount
Note Payment
(Cash Paid)
Notes Payable
9,963
9,963
9,963
9,963
39,852
2,640
2,054
1,421
738
6,853
33,000
25,677
17,768
9,226
7,323
7,909
8,542
9,926
33,700
25,677
17,768
9,226
0
b. Journalize the entries for the issuance of the note and the four annual note payments
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