parasota purchased a new piece of equipment to be used in its new facility. The $416,000 piece of equipment was purchased with a $49,000 down payment and with cash received through the issuance of a $367,000, 6%, 5-year mortgage payable issued on Januar 2022. The terms provide for annual installment payments of $87,125 on December 31. (a) Prepare an installment payments schedule for the five payments of the notes payable. (Round answers to O decimal places, e.g. 15,250.) nual erest Cash Payment Interest Expense Reduction of Principal Principal Balam riod

parasota purchased a new piece of equipment to be used in its new facility. The $416,000 piece of equipment was purchased with a $49,000 down payment and with cash received through the issuance of a $367,000, 6%, 5-year mortgage payable issued on Januar 2022. The terms provide for annual installment payments of $87,125 on December 31. (a) Prepare an installment payments schedule for the five payments of the notes payable. (Round answers to O decimal places, e.g. 15,250.) nual erest Cash Payment Interest Expense Reduction of Principal Principal Balam riod

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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LCD Industries purchased a supply of electronic components from Entel Corporation on November 1, 2021. In payment for the $24 million purchase, LCD issued a 1- year installment note to be paid in equal monthly payments at the end of each month. The payments include interest at the rate of 12%. A. Calculate the monthly payment B. Prepare the amortization schedule for the note C. Prepare the journal entry for the purchase on the electronic components on November 1, 2021. D. Prepare the journal entry for the following dates: • For the installment note payment on November 31, 2021 • For the installment note payment on October 31, 2022
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