LO 10-2 M10-7 Reporting Interest and Long-Term Debt, Including Current Portion Barton Chocolates used a promissory note to borrow $1,000,000 on July 1, 2021, at an annual interest rate of 6 percent. The note is to be repaid in yearly installments of $200,000, plus accrued interest, on June 30 of every year until the note is paid in full (on June 30, 2026). Show how the results of this transaction would be reported in a classified balance sheet prepared as of December 31, 2021.

LO 10-2 M10-7 Reporting Interest and Long-Term Debt, Including Current Portion Barton Chocolates used a promissory note to borrow $1,000,000 on July 1, 2021, at an annual interest rate of 6 percent. The note is to be repaid in yearly installments of $200,000, plus accrued interest, on June 30 of every year until the note is paid in full (on June 30, 2026). Show how the results of this transaction would be reported in a classified balance sheet prepared as of December 31, 2021.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

For an interest-bearing promissory notes, compute the sale proceeds, when the issue amount is $18,200, term of the note is 4 1/2 years with interest rate 9.45% compounded monthly, the date of sale before maturity is 1.7 years with a discount rate 15% compounded quarterly. Select one: O a. 21634.97 Ob. 21642.76 O c. 21580.47 d. none
ABC signed a 5-year, 9% note payable for $80,000 on May 1, 2012. Which account will be credited when the note paid at maturity? A. Note payable В. Interest expense С. Interest payable D. Cash
On January 1, 2020, a company issued a $30,000 three-year, 4% note payable, repayable in 12 quarterly installments with fixed principal payments. How much would be presented as the current portion of note payable on the December 31, 2020 balance sheet? Group of answer choices $2,500 $10,000 $2,600 $11,200
In January 1, 2020, Mega Corporation issued a $55,000, three-year, 6% installment note from Biggest Bank. The note requires annual payments of $20,576 beginning on December 31, 2020. Use this information to complete the following loan amortization table (round all of your answers to the nearest dollar). Amortization of Installment Note For the Year Ending Jan. 1st Carrying Amount Note Payment (Cash paid) Interest Expense (6%) Decrease in Principal Dec. 31st Carrying Amount 12/31/20 12/31/21 12/31/22
Recording Accrued Interest Expense Alaska Inc. borrowed $16,000 by signing a one-year note payable on November 1, 2020. The note bears interest at 10% and interest is payable upon maturity of the note. a. Record this financing transaction on November 1, 2020. b. Record the year-end adjusting entry required on December 31, 2020. Hint: Prorate the annual interest of 10% for two months. c. Record the entry to repay the note on November 1, 2021. Note: Round your answers to the nearest dollar. For example, enter 50 for 50.49 and enter 51 for 50.5
Please don't give image format
please help me dont give answer in image format
please dont proviide answer in image format thank you
$60,000, 5-year bonds, with a 10% stated rate of interest are issued at $55,584 on January 1, 2021. Interest payments are made semi-annually on June 30 and December 31. How much interest expense would be recognized on the first interest payment date? Assume straight-line amortization is used. Round your answer to the nearest dollar.
Proceeds from Notes Payable On January 26, McMaster Co. borrowed cash from Quantum Bank by issuing a 45-day note with a face amount of $324,000. Assume a 360-day year. Required: a. Determine the proceeds of the note, assuming that the note carries an interest rate of 10%.$ b. Determine the proceeds of the note, assuming that the note is discounted at 10%.$
On December 1, 2024 Modern Deing Products borrowed $97,000 on a 0% 10-year note with annual installment payments of $9 700 plus interest due on December 1 of each succeeding year On December 1. the principal was recorded as a What amount of the nole will be shown as portion of 20247 (Round your answer to nearest whole number) Nole Payable on OA $19,400 OB $15.500 OC. $9,700 OD $5,820
Amortization Schedule - Long-term Note January 1, 2020 Wang Co borrows $40,000 at 5% for 7 years. Determine the blended annual December 31, year-end payments. Prepare an amortization schedule. N (period of time) | (Interest) PV (Present Value FV (Future Value) PMT (Annuity) Required 1 Prepare the loan amortization schedule using the effective interest method. Beginning Balance Interest Principal Payment Annual Principal Page T Period Раде Payment Expense Balance 1 2 3 4 6 7 2 Determine the amount that would be presented on the balance sheet at December 31, 2020 (at end of year 1) as: Current portion of long-term note at December 31, 2020 3 Prepare the journal entry to record the last loan payment. General Journal DR CR