On January 2, 2023, the Casual Elite Co. acquired land to build a distribution centre by issuing a 8%, three-year note for $208,000. The note will be paid in three annual payments of $80,711 each December 31. The payment schedule follows: Year 2023 2024 2025 Principal Interest Portion Portion of Payment Annual Payment of Payment S 80,711 80,711 80,711 Principal Balance at Year- End $ 64,071 69,197 74,732 $ 16,640 11,514 5,979 $ 143,929 74,732 0 Required: 1. Prepare the entry to: Issue the note on January 2, 2023. Record the annual payment on December 31, 2023.

On January 2, 2023, the Casual Elite Co. acquired land to build a distribution centre by issuing a 8%, three-year note for $208,000. The note will be paid in three annual payments of $80,711 each December 31. The payment schedule follows: Year 2023 2024 2025 Principal Interest Portion Portion of Payment Annual Payment of Payment S 80,711 80,711 80,711 Principal Balance at Year- End $ 64,071 69,197 74,732 $ 16,640 11,514 5,979 $ 143,929 74,732 0 Required: 1. Prepare the entry to: Issue the note on January 2, 2023. Record the annual payment on December 31, 2023.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 1PA: On January 1, 2018, King Inc. borrowed $150,000 and signed a 5-year, note payable with a 10%...

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