Do fast answer of this accounting questions On July 1, 2023, Thompson Company issued a 4% long-term notepayable for $12,000. It is payable over a 3-year term in $4,000principal installments on July 1 of each year beginning July 1, 2024.Each yearly installment will include both principal repayment of$4,000 and interest payment for the preceding one-year period.What is the amount of total cash payment that Thompson will makeon July 1, 2024?

Step 1: Definition ofCash Payment: The total cash outflow made for the repayment of a loan, which…

Answered: On July 1, 2023, Thompson Company…

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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Chemical Enterprises issues a note in the amount of $156,000 to a customer on January 1, 2018. Terms of the note show a maturity date of 36 months, and an annual interest rate of 8%. What is the accumulated interest entry if 9 months have passed since note establishment?
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?
On January 1, 2018, the Merit Group issued to its bank a $41 million, five-year installment note to be paid infive equal payments at the end of each year. Installment payments of $10 million annually include interest atthe rate of 7%. What would be the amount(s) related to the note that Merit would report in its statement of cashflows for the year ended December 31, 2018?
On March 1, 2024, Lewis Services issued a 10% long - term notes payable for $24,000. It is payable over a 6– year term in $4000 principal installments on March 1 of each year, beginning March 1, 2025. Which of the following entries needs to be made on March 1, 2024? O A. Current Portion of Long - Term Notes Payable Long- Term Notes Payable 24,000 24,000 O B. Long - Term Notes Payable Accounts Payable 24,000 24,000 O C. Long - Term Notes Payable 4000 Cash 4000 O D. Cash 24,000 Long - Term Notes Payable 24,000
Samco signed a 9-year note payable on January 1, 2025, of $540,000. The note requires annual principal payments each December 31 of $60,000 plus interest at 6%. The entry to record the annual payment on December 31, 2026, includes A. a debit to Interest Expense for $28,800. B. a credit to Cash of $92,400. C. a debit to Interest Expense for $32,400. D. a credit to Notes Payable for $60,000.
Jones Company signed a 5-year note payable on January 1, 2020, of $100,000. The note requires annual principal payments each December 31 of $20,000 plus interest of 5%. The entry to record the annual payment on December 31, 2021, includes:
Questions # 14-16 are based on the following: On January 1, 2021, Music Angel issued a four-year installment note in the amount of $5,100,000 in exchange for a new machine. The note is to be paid in four equal payments of $1,574,210 at the end of each year. The payments include interest at the rate of 9%. 14. Interest expense will be recorded at December 31, 2021 for: A. $1,324,981 B. $1,115,210 C. $249,229 D. $459,000 15. By how much will the carrying value decrease when the first payment is made? A. $1,574,210 B. $459,000 C. $1,115,210 D. $358,631 16. What is the carrying value at December 31, 2022? A. $2,769,211 B. $5,100,000 C. $3,984,790 D. $1,951,580
On January 1, 2018, Company B borrowed 50,000 signing a 3-year installment note payable with yearly cash payments of $19,402 due each December Assuming the interest rate is 8%, what is the net note payable reported on the December 31 balance sheet after the annual payment?
On January 1, 2021, Eagle Company borrows $26,000 cash by signing a four-year, 8% installment note. The note requires four equal payments of $7,850, consisting of accrued interest and principal on December 31 of each year from 2021 through 2024. Prepare the journal entries for Eagle to record the note's issuance and each of the four payments. Note: Round your intermediate calculations and final answers to the nearest dollar amount.
On January 1, 2020, MWB, Inc. borrowed cash by issuing a $600,000, 6-year note that specified 6% interest to be paid on December 31 of each year and the $600,000 to be paid at maturity. If the note had instead been an installment note to be paid in six equal payments at the end of each year beginning December 31, 2020, which of the following would be true? Select one: a. The annual cash payment would have been less b. The first year's interest expense would have been higher c. The effective interest rate would have been higher. d. The second year's interest expense would have been less than in year one e. The second year's interest expense would have been less than in year three Clear my choice
On January 1,2021, Eagle Company borrows $100,000 cash by signing a four-year, 7% installment note. The note requires four equal payments of $29,523, consisting of accrued interest and principal on December 31 of each year from 2021 through 2024. Prepare an amortization table for this installment note.
On November 1, 2022, Roberts Inc. provided consulting services in exchange for a one-year, 10% promissory note with a face value of $30,000. The note is interest-bearing. The note’s face value plus accrued interest compounded annually is due to be paid back when the nature matures on November 1, 2023. Roberts’s journal entry to record the collection of the note and interest on November 1, 2023, should include a: (round all calculations to the nearest whole dollar) Credit to “Interest Revenue” for $2,500. Credit to “Interest Revenue” for $3,000. Credit to “Interest Receivable” for $2,500. Credit to “Interest Receivable” for $3,000.

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