Don't use ai given answer accounting and question On October 1, 2023, Summit Industries issued a 6% long-term note payablefor $40,000. It is payable over a 5-year term in $8,000 principal installmentson October 1 of each year, beginning October 1, 2024. Each yearly installmentwill include both principal repayment of $8,000 and interest payment for thepreceding one-year period.What is the total cash payment Summit will make on October 1, 2024?

Step 1: Definition of Total Cash PaymentTotal cash payment refers to the total amount of money a…

Answered: On October 1, 2023, Summit Industries…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 5Q: If Bergen Air Systems takes out a $100,000 loan, with eight equal principal payments due over the...

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On April 1, 2020, Hudson Enterprises issued a 4% long-term note payable for $18,000. It is payable over a 3-year term in $6,000 principal installments on April 1 of each year, beginning April 1, 2021. Each yearly installment will include both principal repayment of $6,000 and interest payment for the preceding one-year period. What is the total cash payment Hudson will make on April 1, 2021?
What is the total cash payment Hudson will make on April 1, 2021?
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 January 1, 2021, the Merit Group issued to its bank a $41 million, five-year installment note to be paid in five equal payments at the end of each year. Installment payments of $10 million annually include interest at the rate of 7%. What would be the amount(s) related to the note that Merit would report in its statement of cash flows for the year ended December 31, 2021?
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 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.
On January 1, 2020, Empress Bank granted a loan to a borrower. The interest rate on the loan is 10% payable annually on December 31, 2020. The loan matures in three years on December 31, 2022. Principal amount 5,000,000 Direct origination cost incurred 457,500 Origination fee received from the borrower 200,000 After considering the origination fee charged against the borrower and the direct origination cost incurred, the effective rate on the loan is 8%. Prepare the journal entries for 2020, 2021, and 2022.
Pauper Bank granted a loan to a borrower on January 1, 2020. The interest on the loan is 8% payable annually starting December 31, 2020. The loan matures in three years on December 31, 2022. Principal amount 3,000,000 Direct origination cost incurred 260,300 Origination fee charged against the borrower 100,000 After considering the origination fee charged to the borrower and the direct origination cost incurred, the effective rate on the loan is 6%. Required: 1. Prepare journal entries for 2020, 2021 and 2022. 2. Present the loan receivable on December 31, 2020.
Moderate Bank granted a loan to a borrower on January 1, 2020. The interest on the loan is 10% payable annually starting December 31, 2020. The loan matures in three years on December 31, 2022. Principal amount 5,000,000 Direct origination cost incurred 100,000 Indirect origination cost incurred 50,000 Origination fee received from the borrower 340,000 After considering the origination fee received from the borrower and the direct origination cost incurred, the effective rate on the loan is 12%. 1. What is the carrying amount of the loan receivable on January 1, 2020? a. 4,760,000 b. 5,000,000 c. 4,810,000 d. 4,660,000 2. What is the interest income for 2020? a. 571,200 b. 500,000 c. 476,000 d. 547,200 3. What is the carrying amount of the loan receivable on December 31, 2020? a. 5,000,000 b. 4,760,000 c. 4,831,200 d. 4,910,944
Awesome Bank granted a loan to a borrower on January 1, 2020. The interest rate on the loan is 10% payable annually starting December 31, 2020. The loan matures in five years on December 31, 2024. Principal amount 4,000,000 Direct origination cost 61,500 Origination fee received from the borrower 350,000 The effective rate on the loan after considering the direct origination cost and origination fee received is 12%. Required: 1. Compute the carrying amount of the loan receivable on January 1, 2020. 2. Prepare a table of amortization for the loan receivable. 3. Prepare the journal entries for 2020 and 2021.
Sigma Bank granted a loan to a borrower in the amount of P 5,000,000 on January 1, 2021. The interest rate on the loan is 10% payable annually starting December 31, 2021. The loan matures in five years on December 31, 2025. Sigma Bank incurs P 39,400 of direct loan origination cost and P 10,000 of indirect loan origination cost. In addition, Sigma Bank charges the borrower an 8-point nonrefundable loan origination fee. PV of principal .5674; PV of interest 3.6048 Prepare an amortization table. 1. The carrying amount of the loan as of January 1, 2021 is A. P 4,639,400 B. P 5,000,000 C. P 4,649,400 D. P 5,039,400 2. The effective interest of the loan is A. 9.80 % B. 10% C. 12% D. 11.94% 3. What is the carrying amount of the loan as at December 31, 2021? A. P 5,000,000 B. P 4,696,128 C. P 4,759,663 D. P 4,639,400 3.The interest income to be recognized in 2021 A. P 493,861 B. P 500,000 C. P 555,138 D. P 556,728 4. What is the amount of discount amortization as at December 31, 2021?…

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