On January 1, 20x1, Lawrence Lenders loaned $9.6 million to Wilkins Food Products, Inc. to purchase a frozen food storage Facility. Wilkins signed a three-year, 4% installment note to be paid in three equal payments at the end of each year. (FV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: Prepare the following for Lawrence Lenders: 1. Prepare the journal entry for lending the funds on January 1, 20x1. 2. Prepare an amortization schedule for the three-year term of the installment note. 3. Prepare the journal entry for the first installment payment received on December 31, 20x1. 4. Prepare the journal entry for the third installment payment received on December 31, 20x3. Complete this question by entering your answers in the tabs below.
On January 1, 20x1, Lawrence Lenders loaned $9.6 million to Wilkins Food Products, Inc. to purchase a frozen food storage Facility. Wilkins signed a three-year, 4% installment note to be paid in three equal payments at the end of each year. (FV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: Prepare the following for Lawrence Lenders: 1. Prepare the journal entry for lending the funds on January 1, 20x1. 2. Prepare an amortization schedule for the three-year term of the installment note. 3. Prepare the journal entry for the first installment payment received on December 31, 20x1. 4. Prepare the journal entry for the third installment payment received on December 31, 20x3. Complete this question by entering your answers in the tabs below.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![On January 1, 20x1, Lawrence Lenders loaned $9.6 million to Wilkins Food Products, Inc. to purchase a frozen food storage
facility. Wilkins signed a three-year, 4% installment note to be paid in three equal payments at the end of each year. (FV of $1, PV of $1,
FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)
Required: Prepare the following for Lawrence Lenders:
1. Prepare the journal entry for lending the funds on January 1, 20x1.
2. Prepare an amortization schedule for the three-year term of the installment note.
3. Prepare the journal entry for the first installment payment received on December 31, 20x1.
4. Prepare the journal entry for the third installment payment received on December 31, 20x3.
Complete this question by entering your answers in the tabs below.
Req 2
Saved
Req 1 3 and 4
2021
Prepare an amortization schedule for the three-year term of the installment note. (Enter your answers in whole dollars.)
Dec. 31 Cash Payment Effective Interest
Decrease in
Balance
Outstanding
Balance
3,459,347
< Prev
8 of 24
9,600,000
‒‒‒
‒‒‒
Help Save & Exit Su
SAMSUNG
Next >
ENG
10/8](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb844f733-bf45-49a9-8b39-98634d102a27%2Fcea02f60-d462-43dc-a858-be2195d145c5%2F4pjqct_processed.jpeg&w=3840&q=75)
Transcribed Image Text:On January 1, 20x1, Lawrence Lenders loaned $9.6 million to Wilkins Food Products, Inc. to purchase a frozen food storage
facility. Wilkins signed a three-year, 4% installment note to be paid in three equal payments at the end of each year. (FV of $1, PV of $1,
FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)
Required: Prepare the following for Lawrence Lenders:
1. Prepare the journal entry for lending the funds on January 1, 20x1.
2. Prepare an amortization schedule for the three-year term of the installment note.
3. Prepare the journal entry for the first installment payment received on December 31, 20x1.
4. Prepare the journal entry for the third installment payment received on December 31, 20x3.
Complete this question by entering your answers in the tabs below.
Req 2
Saved
Req 1 3 and 4
2021
Prepare an amortization schedule for the three-year term of the installment note. (Enter your answers in whole dollars.)
Dec. 31 Cash Payment Effective Interest
Decrease in
Balance
Outstanding
Balance
3,459,347
< Prev
8 of 24
9,600,000
‒‒‒
‒‒‒
Help Save & Exit Su
SAMSUNG
Next >
ENG
10/8
![-~-
Req 2
2021
2022
2023
Req 1 3 and 4
Prepare an amortization schedule for the three-year term of the installment note. (Enter your answers in whole
Decrease in
Balance
Outstanding
Balance
Dec. 31 Cash Payment
H
3,459,347
www MEVE ..
3,459,347
Effective Interest
Reg 1
< Prev
9,600,000
Req 1 3 and 4 >
8 of 24
‒‒‒
‒‒‒
‒‒‒
19
Next >
D](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb844f733-bf45-49a9-8b39-98634d102a27%2Fcea02f60-d462-43dc-a858-be2195d145c5%2Fgtj0w7_processed.jpeg&w=3840&q=75)
Transcribed Image Text:-~-
Req 2
2021
2022
2023
Req 1 3 and 4
Prepare an amortization schedule for the three-year term of the installment note. (Enter your answers in whole
Decrease in
Balance
Outstanding
Balance
Dec. 31 Cash Payment
H
3,459,347
www MEVE ..
3,459,347
Effective Interest
Reg 1
< Prev
9,600,000
Req 1 3 and 4 >
8 of 24
‒‒‒
‒‒‒
‒‒‒
19
Next >
D
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 1 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education