The following amortization schedule indicates the interest and principal that Chip's Cookie Corporation (CCC) must repay on aninstallment note established January 1, 2021. CCC has a December 31 year-end and makes the required annual payments onDecember 31. Use the amortization schedule to prepare CCC's required journal entries on (a) January 1, 2021; (b) December 31, 2021;(c) December 31, 2022; (d) December 31, 2023; and (e) December 31, 2024. (If no entry is required for a transaction/event, select "NoJournal Entry Required" in the first account field. Do not round intermediate calculations.)Year1234TotalBeginning NotePayable17,00013,1148,9954,629View transaction list<Journal entry worksheet1Interest Expense1,0207875402782,6252Transaction(C)3Note: Enter debits before credits.4Repaid Principalon Note Payable3,8864,1194,3664,62917,0005Record the payment on the installment note on December 31, 2022.Ending NotePayable13, 1148,9954,6290General JournalDebitCredit> The following amortization schedule indicates the interest and principal that Chip's Cookie Corporation (CCC) must repay on aninstallment note established January 1, 2021. CCC has a December 31 year-end and makes the required annual payments onDecember 31. Use the amortization schedule to prepare CCC's required journal entries on (a) January 1, 2021; (b) December 31, 2021;(c) December 31, 2022; (d) December 31, 2023; and (e) December 31, 2024. (If no entry is required for a transaction/event, select "NoJournal Entry Required" in the first account field. Do not round intermediate calculations.)Year1234TotalBeginning NotePayable17,00013,1148,9954,629View transaction listInterest Expense1,0207875402782,625Journal entry worksheet< 1 2 3Note: Enter debits before credits.Transaction(d)4Repaid Principalon Note Payable3,8864,1194,3664,62917,0005Record the payment on the installment note on December 31, 2023.Ending NotePayable13,1148,9954,6290General JournalDebitCredit

Solution : To record installment payment of note, cash is credited with installment amount; Interest expense is debited with interest component and notes payable is debited with reduction in carrying value.Chip Cookie Corporation Journal Entries Date Particulars Debit Credit 31-Dec-22 Interest expense $787.00 Notes Payable $4,119.00 Cash $4,906.00 (To record note installment payment) 31-Dec-23 Interest expense $540.00 Notes Payable $4,366.00 Cash $4,906.00 (To record note installment payment)

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Accounting

The following amortization schedule indicates the interest and principal that Chip's Cookie Corporation (CCC) must repay on an installment note established January 1, 2021. CCC has a December 31 year-end and makes the required annual payments on December 31. Use the amortization schedule to prepare CCC's required journal entries on (a) January 1, 2021; (b) December 31, 2021; (c) December 31, 2022; (d) December 31, 2023; and (e) December 31, 2024. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations.) Year 1 2 3 4 Total Beginning Note Payable 17,000 13,114 8,995 4,629 View transaction list Interest Expense 1,020 787 540 278 2,625 Repaid Principal on Note Payable 3,886 4,119 4,366 4,629 17,000 Ending Note Payable 13,114 8,995 4,629 0

The following amortization schedule indicates the interest and principal that Chip's Cookie Corporation (CCC) must repay on an installment note established January 1, 2021. CCC has a December 31 year-end and makes the required annual payments on December 31. Use the amortization schedule to prepare CCC's required journal entries on (a) January 1, 2021; (b) December 31, 2021; (c) December 31, 2022; (d) December 31, 2023; and (e) December 31, 2024. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations.) Year 1 2 3 4 Total Beginning Note Payable 17,000 13,114 8,995 4,629 View transaction list Interest Expense 1,020 787 540 278 2,625 Repaid Principal on Note Payable 3,886 4,119 4,366 4,629 17,000 Ending Note Payable 13,114 8,995 4,629 0

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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