The following amortization schedule indicates the interest and principal to be repaid on an installment note established January 1, 2021, for a company with a March 31 fiscal year-end. Period 1/1-12/31, Year 1 1/1-12/31, Year 2 1/1-12/31, Year 3 1/1-12/31, Year 4 Total Beginning Notes Payable $ 28,000 21,207 14, 278 7,210 Interest Expense $ 560 424 286 144 1,414 Repaid Principal on Notes Payable $ 6,793 6,929 7,068 7,210 28,000 Ending Notes Payable $ 21,207 14, 278 7,210 0 Required: 1. Assuming the company makes the required annual payments on December 31, use the amortization schedule to determine (a) the amount of the (rounded) annual payment; (b) the amount of Interest Expense to report in the year ended March 31, 2021; (c) the amount of Interest Expense to report in the year ended March 31, 2022; (d) the Notes Payable balance at January 1, 2024; and (e) the total interest and total principal paid over the note's entire life 2. Assuming the company makes adjustments at the end of each fiscal year, prepare the journal entries required on (a) January 1, 2021, and (b) March 31, 2021.
The following amortization schedule indicates the interest and principal to be repaid on an installment note established January 1, 2021, for a company with a March 31 fiscal year-end. Period 1/1-12/31, Year 1 1/1-12/31, Year 2 1/1-12/31, Year 3 1/1-12/31, Year 4 Total Beginning Notes Payable $ 28,000 21,207 14, 278 7,210 Interest Expense $ 560 424 286 144 1,414 Repaid Principal on Notes Payable $ 6,793 6,929 7,068 7,210 28,000 Ending Notes Payable $ 21,207 14, 278 7,210 0 Required: 1. Assuming the company makes the required annual payments on December 31, use the amortization schedule to determine (a) the amount of the (rounded) annual payment; (b) the amount of Interest Expense to report in the year ended March 31, 2021; (c) the amount of Interest Expense to report in the year ended March 31, 2022; (d) the Notes Payable balance at January 1, 2024; and (e) the total interest and total principal paid over the note's entire life 2. Assuming the company makes adjustments at the end of each fiscal year, prepare the journal entries required on (a) January 1, 2021, and (b) March 31, 2021.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter9: Current Liabilities And Contingent Obligations
Section: Chapter Questions
Problem 3E: Non-Interest-Bearing Notes Payable On November 16, 2019, Clear Glass Company borrowed 20,000 from...
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![Required 1 Required 2
Assuming the company makes adjustments at the end of each fiscal year, prepare the journal entries required on (a) January 1, 2021,
and (b) March 31, 2021. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do
not round intermediate calculations.)
View transaction list
Journal entry worksheet
<
1
2
Record the entry on January 1, 2021.
Note: Enter debits before credits.
Transaction
(a)
General Journal
Debit
Credit
>](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F09179a8e-98d4-4669-ad99-5e5bc53fdaac%2F0efffe5a-774f-4eaf-bed0-e82d23c15e16%2Fin6cw3f_processed.png&w=3840&q=75)
Transcribed Image Text:Required 1 Required 2
Assuming the company makes adjustments at the end of each fiscal year, prepare the journal entries required on (a) January 1, 2021,
and (b) March 31, 2021. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do
not round intermediate calculations.)
View transaction list
Journal entry worksheet
<
1
2
Record the entry on January 1, 2021.
Note: Enter debits before credits.
Transaction
(a)
General Journal
Debit
Credit
>
![The following amortization schedule indicates the interest and principal to be repaid on an installment note established January 1,
2021, for a company with a March 31 fiscal year-end.
Period
Interest Expense on Notes Payable
$ 560
424
#TITT
286
144
1,414
1/1-12/31, Year 1
1/1-12/31, Year 2
1/1-12/31, Year 3
1/1-12/31, Year 4
Total
Beginning Notes
Payable
$ 28,000
21, 207
14, 278
Repaid Principal Ending Notes
7,210
$ 6,793
6,929
7,068
7,210
28,000
Payable
$ 21,207
14,278
7,210
Required:
1. Assuming the company makes the required annual payments on December 31, use the amortization schedule to determine (a) the
amount of the (rounded) annual payment; (b) the amount of Interest Expense to report in the year ended March 31, 2021; (c) the
amount of Interest Expense to report in the year ended March 31, 2022; (d) the Notes Payable balance at January 1, 2024; and (e)
the total interest and total principal paid over the note's entire life
2. Assuming the company makes adjustments at the end of each fiscal year, prepare the journal entries required on (a) January 1, 2021,
and (b) March 31, 2021.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F09179a8e-98d4-4669-ad99-5e5bc53fdaac%2F0efffe5a-774f-4eaf-bed0-e82d23c15e16%2F8k39zm_processed.png&w=3840&q=75)
Transcribed Image Text:The following amortization schedule indicates the interest and principal to be repaid on an installment note established January 1,
2021, for a company with a March 31 fiscal year-end.
Period
Interest Expense on Notes Payable
$ 560
424
#TITT
286
144
1,414
1/1-12/31, Year 1
1/1-12/31, Year 2
1/1-12/31, Year 3
1/1-12/31, Year 4
Total
Beginning Notes
Payable
$ 28,000
21, 207
14, 278
Repaid Principal Ending Notes
7,210
$ 6,793
6,929
7,068
7,210
28,000
Payable
$ 21,207
14,278
7,210
Required:
1. Assuming the company makes the required annual payments on December 31, use the amortization schedule to determine (a) the
amount of the (rounded) annual payment; (b) the amount of Interest Expense to report in the year ended March 31, 2021; (c) the
amount of Interest Expense to report in the year ended March 31, 2022; (d) the Notes Payable balance at January 1, 2024; and (e)
the total interest and total principal paid over the note's entire life
2. Assuming the company makes adjustments at the end of each fiscal year, prepare the journal entries required on (a) January 1, 2021,
and (b) March 31, 2021.
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