On January 1, the Hudson Company borrowed $190,000 to purchase machinery and agreed to pay 10% interest for six years on an installment note. Each note payment is $43,625 and is due on the last day ofthe year. What is the carrying value of the loan at the end of the first year? (Do not round intermediate calculations. Only round your final answer to the nearest dollar.)A. $146,375B. $209,000○ C. $190,000D. $165,375

1. Calculate the interest for the first year:The interest for the first year is calculated…

Answered: On January 1, the Hudson Company…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 15MC: Marathon Peanuts converts a $130,000 account payable into a short-term note payable, with an annual...

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Scrimiger Paints wants to upgrade its machinery and on September 20 takes out a loan from the bank in the amount of $500,000. The terms of the loan are 2.9% annual interest rate and payable in 8 months. Interest is due in equal payments each month. Compute the interest expense due each month. Show the journal entry to recognize the interest payment on October 20, and the entry for payment of the short-term note and final interest payment on May 20. Round to the nearest cent if required.
Sharapovich Inc. borrowed $50,000 from Kerber Bank and signed a 5-year note payable stating the interest rate was 5% compounded annually. Sharapovich Inc. will make payments of $11,548.74 at the end of each year. Prepare an amortization table showing the principal and interest in each payment.
On January 1, 2018, King Inc. borrowed $150,000 and signed a 5-year, note payable with a 10% interest rate. Each annual payment is in the amount of $39,569 and payment is due each Dec. 31. What is the journal entry on Jan. 1 to record the cash received and on Dec. 31 to record the annual payment? (You will need to prepare the first row in the amortization table to determine the amounts.)
Halep Inc. borrowed $30,000 from Davis Bank and signed a 4-year note payable stating the interest rate was 4% compounded annually. Halep Inc. will make payments of $8,264.70 at the end of each year. Prepare an amortization table showing the principal and interest in each payment.
On January 1, New Jersey Company borrowed $260,000 to purchase machinery and agreed to pay 7% interest for eight years on an installment note. Each note payment is doe on the last day of the year. What is the carrying value of the loan at the end of the second year? (Do not round intermediate calculations. Only round your final answer to the nearest dollar.) A. $214,685 B. $218,232 C. $172,917 D. $207,543
On January 1, the Hudson Company borrowed $120,000 to purchase machinery and agreed to pay 4% interest for six years on an installment note. Each note payment is $22,891 and is due on the last day of the year. What is the carrying value of the loan at the end of the first year? (Do not round intermediate calculations. Only round your final answer to the nearest dollar.) OA. $120,000 O B. $101,909 OC. $124,800 D. $97,109
On January 1, the Hudson Company borrowed $150,000 to purchase machinery and agreed to pay 4% interest for six years on an installment note. Each note payment is $28,614 and is due on the last day of the year. How much interest will Hudson report for the first year of the loan? (Do not round intermediate calculations. Only round your final answer to the nearest dollar.) O A. $6,000 OB. $28,614 C. $22,614 OD. $1,145
On January 1, New York Company borrowed $180,000 to purchase machinery and agreed to pay 5% interest for 6 years on an installment note. Each note payment is due on the last day of the year. What is the total interest expense over the life of the loan? A. $32,779 B. $54,000 C. $33,657 D. $35,463
Harrison Corporation borrowed $35,000 from F&M Bank on June 1 of the current year. The bank required 7% interest. Interest will be paid when the nine-month note becomes due. What is the interest expense for the current year? (Do not round intermediate calculations. Only round your final answer to the nearest dollar.) A. $0 B. $2,450 C. $1,225 D. $1,429
On June 8, Williams Company issued an $80,000, 5%, 120-day note payable to Brown Industries. Assuming a 360-day year, what is the maturity value of the note? When required, round your answer to the nearest dollar. a. $82,600 b. $84,000 c. $81,333 d. $88,200
Harrison Corporation borrowed $35,000 from F&M Bank on June 1 of the current year. The bank required 9% interest. Interest will be paid when the nine-month note becomes due. What is the amount that will be paid upon maturity of the note? (Do not round intermediate calculations. Only round your final answer to the nearest dollar.) A. $38,150 B. $37,363 C. $35,525 ○ D. $35,000
- 9. Martin company purchased an equipment in exchange of an installment note, promising to pay $16.000 at the end of each year for a period of 4 years. The implicit rate of interest 6% What is the balance of the Note Payable after the first annual payment (round to the nearest dollar)? A) $42,768 B) $38,195 C) $41,229 $41,989

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