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

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Required information Exercise 7-5 (Algo) Notes payable—discount basis LO 2 Skip to question [The following information applies to the questions displayed below.] On April 15, 2019, Powell Inc. obtained a six-month working capital loan from its bank. The face amount of the note signed by the treasurer was $255,400. The interest rate charged by the bank was 5.00%. The bank made the loan on a discount basis. Exercise 7-5 (Algo) Part a Required:a-1. Calculate the loan proceeds made available to Powell.
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Exercise 7-5 (Algo) Notes payable—discount basis LO 2 Skip to question [The following information applies to the questions displayed below.] On April 15, 2019, Powell Inc. obtained a six-month working capital loan from its bank. The face amount of the note signed by the treasurer was $255,400. The interest rate charged by the bank was 5.00%. The bank made the loan on a discount basis. Exercise 7-5 (Algo) Part c c. What is the amount of the current liability related to this loan to be shown in the June 30, 2019, balance sheet?
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