Tony's favorite memories of his childhood were the times he spent with his dad at camp. Tony was daydreaming of those days a bit he and Suzie jogged along a nature trail and came across a wonderful piece of property for sale. He turned to Suzie and said, "I've always wanted to start a camp where families could get away and spend some quality time together. If we just had the money, I kn this would be the perfect place." On November 1, 2025, Great Adventures purchased the land by issuing a $580,000, 6%, 8-year installment note to the seller. Payments of $7,622 are required at the end of each month over the life of the 8-year loan. Each mont payment of $7,622 includes both interest expense and principal payments (i.e., reduction of the loan amount). Late that night, Tony exclaimed, "We now have land for our new camp; this has to be the best news ever!" Suzie said, "There's something else I need to tell you. I'm expecting!" Required: 1. Complete the first three rows of an amortization schedule. 2. Record the purchase of land with the issuance of a long-term note payable on November 1, 2025. 3-a. Record the first two payments on November 30, 2025, and December 31, 2025.
Tony's favorite memories of his childhood were the times he spent with his dad at camp. Tony was daydreaming of those days a bit he and Suzie jogged along a nature trail and came across a wonderful piece of property for sale. He turned to Suzie and said, "I've always wanted to start a camp where families could get away and spend some quality time together. If we just had the money, I kn this would be the perfect place." On November 1, 2025, Great Adventures purchased the land by issuing a $580,000, 6%, 8-year installment note to the seller. Payments of $7,622 are required at the end of each month over the life of the 8-year loan. Each mont payment of $7,622 includes both interest expense and principal payments (i.e., reduction of the loan amount). Late that night, Tony exclaimed, "We now have land for our new camp; this has to be the best news ever!" Suzie said, "There's something else I need to tell you. I'm expecting!" Required: 1. Complete the first three rows of an amortization schedule. 2. Record the purchase of land with the issuance of a long-term note payable on November 1, 2025. 3-a. Record the first two payments on November 30, 2025, and December 31, 2025.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Kk.231.
Transcribed Image Text:Tony's favorite memories of his childhood were the times he spent with his dad at camp. Tony was daydreaming of those days a bit as
he and Suzie jogged along a nature trail and came across a wonderful piece of property for sale. He turned to Suzie and said, "I've
always wanted to start a camp where families could get away and spend some quality time together. If we just had the money, I know
this would be the perfect place." On November 1, 2025, Great Adventures purchased the land by issuing a $580,000, 6%, 8-year
installment note to the seller. Payments of $7,622 are required at the end of each month over the life of the 8-year loan. Each monthly
payment of $7,622 includes both interest expense and principal payments (i.e., reduction of the loan amount).
Late that night, Tony exclaimed, "We now have land for our new camp; this has to be the best news ever!" Suzie said, "There's
something else I need to tell you. I'm expecting!"
Required:
1. Complete the first three rows of an amortization schedule.
2. Record the purchase of land with the issuance of a long-term note payable on November 1, 2025.
3-a. Record the first two payments on November 30, 2025, and December 31, 2025.
3-b. Calculate the remaining balance of the note payable as of December 31, 2025.
4. The 12 monthly payments in 2026 (following year) will reduce the note's balance by an additional $58,833. Record the
reclassification of this amount from Notes Payable (long-term) to Notes Payable (current).
Date
11/01/2025
11/30/2025
12/31/2025
Cash Paid
Interest
Expense
Change in
Carrying Value
Carrying Value
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