Can you explain the correct methodology to solve this general accounting problem? Everett Corporation started the year with long-term debt of $85,000, whichrepresents the principal balance of a loan payable to Sunrise Bank. During the year,the company made total payments of $20,400, which included $6,400 in interest.Additionally, the company took out a new loan of $14,000.Determine the value of ending long-term debt.

Step 1: Definition of Long-Term DebtLong-term debt refers to loans or financial obligations a…

Answered: Everett Corporation started the year…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 1EA: Halep Inc. borrowed $30,000 from Davis Bank and signed a 4-year note payable stating the interest...

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What is the value of the ending long term debt?
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The following information pertains to Sunland Ltd. In 2024 the company entered into new borrowings using short-term notes payable. On June 30, they borrowed $10,900 that they planned to use to purchase new office equipment, the interest rate on the note was 6% with both interest and principal repayable in 6 months (December 31st). On October 1st, the company financed the purchase of a used vehicle costing $65,400 using a 12 month note payable at 8% with interest payments due quarterly and the principal amount due at maturity. The company's year end is December 31st. Record the journal entries for the issuance of both notes and any interest entries that need to be made up to and including December 31, 2024. Assume that no interest expense was accrued during the year. (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account…
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