Ex 7- Long-Term Note Payablea) What if the Einstein Corporation decided to raise capital (Cash) by issuing a Note instead of selling Stocks orBonds. Journalize the entries for the following:1) Issued the $500,000 3 year 8% Note to the First National Bank on January 1, 202XAccount NameDebitCredit2) Entry made on each December 31 to accrue interest expense for that year.Account NameDebitCredit3) Entry made to pay off the Note at the end of the 3 years, after the entry for the accrual of interest for the thirdvear has been madeAccount NameDebitCreditEx 8 - Installment Note Payablea) What if the Einstein Corporation decided to sign a $500,000, 12%, 20 year Mortgage Note Payable to FirstNational Bank on January 1, 202X for the purchase of a new building. The Mortgage Note stipulates that $33,231 bepaid each 6 months for the next 20 years. Journalize the entries for the following:1) Issued the $500,000 20 year 12% Note to the First National Bank on January 1, Year 1.Account NameDebitCredit2) Entry made on June 30, Year 1 for the 1st payment of $33,231. (Hint: What was the amount of the principalowed for the past 6 months.)Account NameDebitCredit3) Entry made on December 31, Year 1 for the 2nd payment of $33,231. (Hint: What was the amount of theprincipal owed for the past 6 months.)Account NameDebitCredit4) Entry made on June 30, Year 2 for the 3rd payment of $33,231. (Hint: What was the amount of the principalowed for the past 6 months.)Account NameDebitCredit

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Ex 7- Long-Term Note Payable a) What if the Einstein Corporation decided to raise capital (Cash) by issuing a Note instead of selling Stocks or Bonds. Journalize the entries for the following 1) Issued the $500,000 3 year 8% Note to the First National Bank on January 1, 202X Account Name Debit Credit 2) Entry made on each December 31 to accrue interest expense for that year. Account Name Debit Credit 3) Entry made to pay off the Note at the end of the 3 years, after the entry for the accrual of interest for the thi vear has been made Account Name Debit Credit :8-Installment

Ex 7- Long-Term Note Payable a) What if the Einstein Corporation decided to raise capital (Cash) by issuing a Note instead of selling Stocks or Bonds. Journalize the entries for the following 1) Issued the $500,000 3 year 8% Note to the First National Bank on January 1, 202X Account Name Debit Credit 2) Entry made on each December 31 to accrue interest expense for that year. Account Name Debit Credit 3) Entry made to pay off the Note at the end of the 3 years, after the entry for the accrual of interest for the thi vear has been made Account Name Debit Credit :8-Installment

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications

Section: Chapter Questions

Problem 27E

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