FinanceCo lent $8.7 million to Corbin Construction on January 1, 2024, to construct a playground. Corbin signed a three-year, 8% installment note to be paid in three equal payments at the end of each year.   Required: Prepare the journal entry for FinanceCo’s lending the funds on January 1, 2024. Prepare an amortization schedule for the three-year term of the installment note. Prepare the journal entry for the first installment payment on December 31, 2024. Prepare the journal entry for the third installment payment on December 31, 2026. Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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FinanceCo lent $8.7 million to Corbin Construction on January 1, 2024, to construct a playground. Corbin signed a three-year, 8% installment note to be paid in three equal payments at the end of each year.

 

Required:

Prepare the journal entry for FinanceCo’s lending the funds on January 1, 2024.

Prepare an amortization schedule for the three-year term of the installment note.

Prepare the journal entry for the first installment payment on December 31, 2024.

Prepare the journal entry for the third installment payment on December 31, 2026.

Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)

 

 

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