On January 1, 2021, Cullumber Corp. borrows $9,000 by signing a 3-year, 3% note payable. The note is repayable in three annual fixed principal payments on December 31 of each year. Calculate the annual principal payment. Annual principal payment $enter the Annual principal payment in dollars Prepare an instalment payment schedule for the note. Period Cash payment Interest Expense Reduction of Principal Principal Balance Jan. 1, 2021 $enter a dollar amount $enter a dollar amount $enter a dollar amount $enter a dollar amount Dec. 31, 2021 enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount Dec. 31, 2022 enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount Dec. 31, 2023 enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount Prepare journal entries to record the note and the first instalment payment. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit Jan. 1, 2021 enter an account title to record issuance of note on January 1 enter a debit amount enter a credit amount enter an account title to record issuance of note on January 1 enter a debit amount enter a credit amount (To record issuance of note.) Dec. 31, 2021 enter an account title to record payment on note on December 31 enter a debit amount enter a credit amount enter an account title to record payment on note on December 31 enter a debit amount enter a credit amount enter an account title to record payment on note on December 31 enter a debit amount enter a credit amount (To record payment on note.) What amounts would be reported as current and non-current in the liabilities section of Cullumber's balance sheet at December 31, 2021? Current liability $enter a dollar amount Non-current liability $enter a dollar amoun

On January 1, 2021, Cullumber Corp. borrows $9,000 by signing a 3-year, 3% note payable. The note is repayable in three annual fixed principal payments on December 31 of each year. Calculate the annual principal payment. Annual principal payment $enter the Annual principal payment in dollars Prepare an instalment payment schedule for the note. Period Cash payment Interest Expense Reduction of Principal Principal Balance Jan. 1, 2021 $enter a dollar amount $enter a dollar amount $enter a dollar amount $enter a dollar amount Dec. 31, 2021 enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount Dec. 31, 2022 enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount Dec. 31, 2023 enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount Prepare journal entries to record the note and the first instalment payment. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit Jan. 1, 2021 enter an account title to record issuance of note on January 1 enter a debit amount enter a credit amount enter an account title to record issuance of note on January 1 enter a debit amount enter a credit amount (To record issuance of note.) Dec. 31, 2021 enter an account title to record payment on note on December 31 enter a debit amount enter a credit amount enter an account title to record payment on note on December 31 enter a debit amount enter a credit amount enter an account title to record payment on note on December 31 enter a debit amount enter a credit amount (To record payment on note.) What amounts would be reported as current and non-current in the liabilities section of Cullumber's balance sheet at December 31, 2021? Current liability $enter a dollar amount Non-current liability $enter a dollar amoun

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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On January 1, 2021, Cullumber Corp. borrows $9,000 by signing a 3-year, 3% note payable. The note is repayable in three annual fixed principal payments on December 31 of each year.

Calculate the annual principal payment.

Annual principal payment

$enter the Annual principal payment in dollars

Prepare an instalment payment schedule for the note.

Period	Cash payment	Interest Expense	Reduction of Principal	Principal Balance
Jan. 1, 2021	$enter a dollar amount	$enter a dollar amount	$enter a dollar amount	$enter a dollar amount
Dec. 31, 2021	enter a dollar amount	enter a dollar amount	enter a dollar amount	enter a dollar amount
Dec. 31, 2022	enter a dollar amount	enter a dollar amount	enter a dollar amount	enter a dollar amount
Dec. 31, 2023	enter a dollar amount	enter a dollar amount	enter a dollar amount	enter a dollar amount

Prepare journal entries to record the note and the first instalment payment. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
Jan. 1, 2021	enter an account title to record issuance of note on January 1	enter a debit amount	enter a credit amount
	enter an account title to record issuance of note on January 1	enter a debit amount	enter a credit amount
	(To record issuance of note.)
Dec. 31, 2021	enter an account title to record payment on note on December 31	enter a debit amount	enter a credit amount
	enter an account title to record payment on note on December 31	enter a debit amount	enter a credit amount
	enter an account title to record payment on note on December 31	enter a debit amount	enter a credit amount
	(To record payment on note.)

What amounts would be reported as current and non-current in the liabilities section of Cullumber's balance sheet at December 31, 2021?

Current liability		$enter a dollar amount
Non-current liability		$enter a dollar amount

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