EX 10-19 Entries for installment note transactions On the first day of the fiscal year, Shiller Company borrowed $85,000 by giving a seven-year, 7% installment note to Soros Bank. The note requires annual payments of $15,772, with the first payment occurring on the last day of the fiscal year. The first payment consists of interest of $5,950 and principal repayment of $9,822. a. Journalize the entries to record the following: 1. Issued the installment note for cash on the first day of the fiscal year. 2. Paid the first annual payment on the note. Obj. 4 b. Explain how the notes payable would be reported on the balance sheet at the end of the first year.
EX 10-19 Entries for installment note transactions On the first day of the fiscal year, Shiller Company borrowed $85,000 by giving a seven-year, 7% installment note to Soros Bank. The note requires annual payments of $15,772, with the first payment occurring on the last day of the fiscal year. The first payment consists of interest of $5,950 and principal repayment of $9,822. a. Journalize the entries to record the following: 1. Issued the installment note for cash on the first day of the fiscal year. 2. Paid the first annual payment on the note. Obj. 4 b. Explain how the notes payable would be reported on the balance sheet at the end of the first year.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Ex 10-19 Entries for installment note transactions
![- Explain the meaning of the $5,955 million unfunded pension liability and the $432 million
EX 10-17 Pension plan entries
Yuri Co. operates a chain of gift shops. The company
Whims Funds, by the fifteenth of the month following the end of each quarter. Assume that the
Yuri Co. operates a chain of gift shops. The company maintains a defined contribution pension
plan for its employees. The plan requires quarterly installments to be paid to the funding agent,
a. Journalize the entries to record the accrued pension liability on December 31 and the payment
In a recent year's financial statements, Procter & Gamble (PG) showed an unfunded pension
SHOW ME HOW
pension cost is $365,000 for the quarter ended December 31.
a. Journalize the entries to record the accrued pension liability on December 31 and the
to the funding agent on January 15.
b.
How does a defined contribution plan differ from a defined benefit plan?
Obj. 3
EX 10-18 Defined benefit pension plan terms
liability of $5,955 million and a periodic pension cost of $432 million.
REAL WORLD
Explain the meaning of the $5,955 million unfunded pension liability and the $432 million
periodic pension cost.
EX 10-19
Entries for installment note transactions
Obj. 4
On the first day of the fiscal year, Shiller Company borrowed $85,000 by givino a
seven-year, 7% installment note to Soros Bank. The note requires annual payments of $15,772, with
the first payment occurring on the last day of the fiscal year. The first payment consists of interest
of $5,950 and principal repayment of $9,822.
Journalize the entries to record the following:
1. Issued the installment note for cash on the first day of the fiscal year.
2. Paid the first annual payment on the note.
SHOW ME HOW
a.
b.
Explain how the notes payable would be reported on the balance sheet at the end of
the first year.
EX 10-20 Entries for installment note transactions
Obj. 4
On January 1, 20Y2, Hebron Company issued a $175,000, five-year, 8% installment note to Ventsam
Bank. The note requires annual payments of $43,830, beginning on December 31, 20Y2. Journalize
the entries to record the following:
HOW ME HOW
20Y2
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 $14,000 and principal of $29,830.
20Y5
Dec. 31. Paid the annual payment on the note, included $6,253 of interest. The remainder of the payment reduced
the principal balance on the note.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F64809d65-65c9-4b67-918d-d142e91b3509%2Fd31f1fcb-772a-4a87-a620-912edb96fa0d%2F9irpv6m_processed.jpeg&w=3840&q=75)
Transcribed Image Text:- Explain the meaning of the $5,955 million unfunded pension liability and the $432 million
EX 10-17 Pension plan entries
Yuri Co. operates a chain of gift shops. The company
Whims Funds, by the fifteenth of the month following the end of each quarter. Assume that the
Yuri Co. operates a chain of gift shops. The company maintains a defined contribution pension
plan for its employees. The plan requires quarterly installments to be paid to the funding agent,
a. Journalize the entries to record the accrued pension liability on December 31 and the payment
In a recent year's financial statements, Procter & Gamble (PG) showed an unfunded pension
SHOW ME HOW
pension cost is $365,000 for the quarter ended December 31.
a. Journalize the entries to record the accrued pension liability on December 31 and the
to the funding agent on January 15.
b.
How does a defined contribution plan differ from a defined benefit plan?
Obj. 3
EX 10-18 Defined benefit pension plan terms
liability of $5,955 million and a periodic pension cost of $432 million.
REAL WORLD
Explain the meaning of the $5,955 million unfunded pension liability and the $432 million
periodic pension cost.
EX 10-19
Entries for installment note transactions
Obj. 4
On the first day of the fiscal year, Shiller Company borrowed $85,000 by givino a
seven-year, 7% installment note to Soros Bank. The note requires annual payments of $15,772, with
the first payment occurring on the last day of the fiscal year. The first payment consists of interest
of $5,950 and principal repayment of $9,822.
Journalize the entries to record the following:
1. Issued the installment note for cash on the first day of the fiscal year.
2. Paid the first annual payment on the note.
SHOW ME HOW
a.
b.
Explain how the notes payable would be reported on the balance sheet at the end of
the first year.
EX 10-20 Entries for installment note transactions
Obj. 4
On January 1, 20Y2, Hebron Company issued a $175,000, five-year, 8% installment note to Ventsam
Bank. The note requires annual payments of $43,830, beginning on December 31, 20Y2. Journalize
the entries to record the following:
HOW ME HOW
20Y2
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 $14,000 and principal of $29,830.
20Y5
Dec. 31. Paid the annual payment on the note, included $6,253 of interest. The remainder of the payment reduced
the principal balance on the note.
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education