Long-term notes payable: Long-term notes payable represent a legal and written promise made by the business to pay a debt with interest over a period of more than a year. It is reported under the long-term liability section of the balance sheet . Installment note: It is a debt in which the borrower is required to pay equal periodic payments to the lender based on the term of the note. To Journalize: The issuance of the installment note for cash at face amount.

Question

On January 1, 20Y2, Hebron Company issued a $71,000, 4-year, 11% installment note to Ventsam Bank. The note requires annual payments of $22,885, beginning on December 31, 2012. Journalize the entries to record the following: 20Y2 Jan. 1 Issued the note for cash at its face amount. Dec. 31 Paid the annual payment on the note, which consisted of interest of $7,810 and principal of $15,075. 20Y5 Dec. 31 Paid the annual payment on the note, including $2,268 of interest. The remainder of the payment reduced the principal balance on the note. Issued the note for cash at its face amount. If an amount box does not require an entry, leave it blank. 20Y2 Jan. 1 Paid the annual payment on the note, which consisted of interest of $7,810 and principal of $15,075. If an amount box does not require an entry, leave it blank. 20Y2 Dec. 31 88 20Y5 Dec. 31 000 1 000 Paid the annual payment on the note, including interest of $2,268 of interest. The remainder of the payment reduced the principal balance on…

Answer 1

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Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 14, Problem 14.11EX

To determine

Long-term notes payable: Long-term notes payable represent a legal and written promise made by the business to pay a debt with interest over a period of more than a year. It is reported under the long-term liability section of the balance sheet.

Installment note: It is a debt in which the borrower is required to pay equal periodic payments to the lender based on the term of the note.

To Journalize: The issuance of the installment note for cash at face amount.

To determine

To Journalize: The annual payment on the note.

To determine

To Journalize: The annual payment on the note.

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On January 1, 20Y2, Hebron Company issued a $71,000, 4-year, 11% installment note to Ventsam Bank. The note requires annual payments of $22,885, beginning on December 31, 2012. Journalize the entries to record the following: 20Y2 Jan. 1 Issued the note for cash at its face amount. Dec. 31 Paid the annual payment on the note, which consisted of interest of $7,810 and principal of $15,075. 20Y5 Dec. 31 Paid the annual payment on the note, including $2,268 of interest. The remainder of the payment reduced the principal balance on the note. Issued the note for cash at its face amount. If an amount box does not require an entry, leave it blank. 20Y2 Jan. 1 Paid the annual payment on the note, which consisted of interest of $7,810 and principal of $15,075. If an amount box does not require an entry, leave it blank. 20Y2 Dec. 31 88 20Y5 Dec. 31 000 1 000 Paid the annual payment on the note, including interest of $2,268 of interest. The remainder of the payment reduced the principal balance on…

Entries for Installment Note Transactions On the first day of the fiscal year, Shiller Company borrowed $69,000 by giving a seven-year, 9% installment note to Soros Bank. The note requires annual payments of $13,885, with the first payment occurring on the last day of the fiscal year. The first payment consists of interest of $6,210 and principal repayment of $7,675. Journalize the entries to record the following: a1. Issued the installment note for cash on the first day of the fiscal year. If an amount box does not require an entry, leave it blank. - Select - - Select - - Select - - Select - a2. Paid the first annual payment on the note. If an amount box does not require an entry, leave it blank. - Select - - Select - - Select - - Select - - Select - - Select - b. How would the notes payable be reported on the balance sheet at the end of the fiscal year? Select

Entries for Installment Note Transactions On the first day of the fiscal year, Shiller Company borrowed $85,000 by giving a seven-year, 7% installment note to Soros Bank. The note requires annual payments of $15,772, with the first payment occurring on the last day of the fiscal year. The first payment consists of interest of $5,950 and principal repayment of $9,822. Journalize the entries to record the following: a1. Issued the installment note for cash on the first day of the fiscal year. a2. Paid the first annual payment on the note. For a compound transaction, if an amount box does not require an entry, leave it blank. b. Explain how the notes payable would be reported on the balance sheet at the end of the first year. Notes payable are reported as liabilities on the balance sheet. The portion of the note payable that is due within is reported as a . The remaining portion of the note payable…

Answer 2

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Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 14, Problem 14.11EX

To determine

Long-term notes payable: Long-term notes payable represent a legal and written promise made by the business to pay a debt with interest over a period of more than a year. It is reported under the long-term liability section of the balance sheet.

Installment note: It is a debt in which the borrower is required to pay equal periodic payments to the lender based on the term of the note.

To Journalize: The issuance of the installment note for cash at face amount.

To determine

To Journalize: The annual payment on the note.

To determine

To Journalize: The annual payment on the note.

Expert Solution & Answer

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Answer 3

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 14, Problem 14.11EX

To determine

Long-term notes payable: Long-term notes payable represent a legal and written promise made by the business to pay a debt with interest over a period of more than a year. It is reported under the long-term liability section of the balance sheet.

Installment note: It is a debt in which the borrower is required to pay equal periodic payments to the lender based on the term of the note.

To Journalize: The issuance of the installment note for cash at face amount.

To determine

To Journalize: The annual payment on the note.

To determine

To Journalize: The annual payment on the note.

Expert Solution & Answer

Trending nowThis is a popular solution!

See solution

Check out sample textbook solution

Answer 4

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 14, Problem 14.11EX

To determine