am. 270. On January 1, Year 1, the Mahoney Company borrowed $177,000 cash from Sun Bank by issuing a five-year 8% term note. The principal and interest arerepaid by making annual payments beginning on December 31, Year 1. The annual payment on the loan based on the present value of annuity factorwould be $44,331.The amount of principal repayment included in the December 31, Year 1 payment is:Multiple Choice$14,160$44,331$30,171$37,674

In this problem, we are required to compute the amount of principal repayment included in the…

Answered: On January 1, Year 1, the Mahoney…

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter14: Long-term Liabilities: Bonds And Notes

Section: Chapter Questions

Problem 11E

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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.)
If Bergen Air Systems takes out a $100,000 loan, with eight equal principal payments due over the next eight years, how much will be accounted for as a current portion of a noncurrent note payable each year?
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On September 1, 2024, Lindsey Engineering borrows $414,000 cash. The loan is made by Firstlending, under the agreement that Lindsey will repay the principal with four payments of $103,500. Payments are due by October 1 each year, with the first payment being due October 1, 2025 (next year). Interest on the borrowing is 6%, and Lindsey's year end is December 31. 1. Record the long-term note payable by Lindsey Engineering. 2. RECORD the adjusting entry for interest on December 31, 2024. 3. Record the entry to reclassify the current portion of the note on December 31, 2024.
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