Recording Entries for an Installment Note Payable On January 1, 2020, a borrower signed a long-term note, face amount, $100,000; time to maturity, three years; stated rate of interest, 8%. The market rate of interest of 10% determined the cash received by the borrower. The note will be paid in three equal annual installments of $38,803 each December 31 (which is also the end of the accounting period for the borrower). Required a. Compute the cash received by the borrower and prepare a debt amortization schedule. • Note: Round your answer to the nearest whole dollar. 1. Compute the cash received by the borrower. $ 80,000 2. Prepare a debt amortization schedule.

Recording Entries for an Installment Note Payable On January 1, 2020, a borrower signed a long-term note, face amount, $100,000; time to maturity, three years; stated rate of interest, 8%. The market rate of interest of 10% determined the cash received by the borrower. The note will be paid in three equal annual installments of $38,803 each December 31 (which is also the end of the accounting period for the borrower). Required a. Compute the cash received by the borrower and prepare a debt amortization schedule. • Note: Round your answer to the nearest whole dollar. 1. Compute the cash received by the borrower. $ 80,000 2. Prepare a debt amortization schedule.

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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