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. Amortization Schedule: An amortization schedule is a table that shows the details of each loan payment allocated between the principal amount and the overdue interest along with the beginning and ending balance of the loan. From the amortization schedule of the loan, the periodical interest expense, total interest expense and total payment made are known. To prepare: An amortization table for the installment note.

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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 14.12EX

a)

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.

Amortization Schedule: An amortization schedule is a table that shows the details of each loan payment allocated between the principal amount and the overdue interest along with the beginning and ending balance of the loan. From the amortization schedule of the loan, the periodical interest expense, total interest expense and total payment made are known.

To prepare: An amortization table for the installment note.

b)

To determine

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

To determine

To Journalize: The first annual payment on the note.

To determine

To Journalize: The second annual payment on the note.

To determine

To Journalize: The third annual payment on the note.

To determine

To Journalize: The fourth annual payment on the note.

c)

To determine

To describe: How the annual note payment would be reported in the 2016 income statement.

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Question 1. Pearl Leasing Company agrees to lease equipment to Martinez Corporation on January 1, 2025. The following information relates to the lease agreement. 1. The term of the lease is 7 years with no renewal option, and the machinery has an estimated economic life of 9 years. 2 The cost of the machinery is $541,000, and the fair value of the asset on January 1, 2025, is $760,000. 3. At the end of the lease term, the asset reverts to the lessor and has a guaranteed residual value of $45,000, Martinez estimates that the expected residual value at the end of the lease term will be $45,000. Martinez amortizes all of its leased equipment on a straight-line basis. 4. The lease agreement requires equal annual rental payments, beginning on January 1, 2025. 5. The collectibility of the lease payments is probable. 6. Pearl desires a 10% rate of return on its investments. Martinez's incremental borrowing rate is 11%, and the lessor's implicit rate is unknown. Annual rental payment is…

What was it's total assets turnover ratio on these general accounting question?

Answer 2

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 14.12EX

a)

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.

Amortization Schedule: An amortization schedule is a table that shows the details of each loan payment allocated between the principal amount and the overdue interest along with the beginning and ending balance of the loan. From the amortization schedule of the loan, the periodical interest expense, total interest expense and total payment made are known.

To prepare: An amortization table for the installment note.

b)

To determine

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

To determine

To Journalize: The first annual payment on the note.

To determine

To Journalize: The second annual payment on the note.

To determine

To Journalize: The third annual payment on the note.

To determine

To Journalize: The fourth annual payment on the note.

c)

To determine

To describe: How the annual note payment would be reported in the 2016 income statement.

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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 14.12EX

a)

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.

Amortization Schedule: An amortization schedule is a table that shows the details of each loan payment allocated between the principal amount and the overdue interest along with the beginning and ending balance of the loan. From the amortization schedule of the loan, the periodical interest expense, total interest expense and total payment made are known.

To prepare: An amortization table for the installment note.

b)

To determine

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

To determine

To Journalize: The first annual payment on the note.

To determine

To Journalize: The second annual payment on the note.

To determine

To Journalize: The third annual payment on the note.

To determine

To Journalize: The fourth annual payment on the note.

c)

To determine

To describe: How the annual note payment would be reported in the 2016 income statement.

Expert Solution & Answer

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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 14.12EX

a)

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.

Amortization Schedule: An amortization schedule is a table that shows the details of each loan payment allocated between the principal amount and the overdue interest along with the beginning and ending balance of the loan. From the amortization schedule of the loan, the periodical interest expense, total interest expense and total payment made are known.

To prepare: An amortization table for the installment note.

b)

To determine

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

To determine

To Journalize: The first annual payment on the note.

To determine

To Journalize: The second annual payment on the note.

To determine

To Journalize: The third annual payment on the note.

To determine

To Journalize: The fourth annual payment on the note.

c)

To determine

To describe: How the annual note payment would be reported in the 2016 income statement.

Expert Solution & Answer

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Answer 5

Chapter 14, Problem 14.12EX

a)

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.

Amortization Schedule: An amortization schedule is a table that shows the details of each loan payment allocated between the principal amount and the overdue interest along with the beginning and ending balance of the loan. From the amortization schedule of the loan, the periodical interest expense, total interest expense and total payment made are known.

To prepare: An amortization table for the installment note.

b)

To determine

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

To determine

To Journalize: The first annual payment on the note.

To determine

To Journalize: The second annual payment on the note.

To determine

To Journalize: The third annual payment on the note.

To determine

To Journalize: The fourth annual payment on the note.

c)

To determine

To describe: How the annual note payment would be reported in the 2016 income statement.

Answer 6

Chapter 14, Problem 14.12EX

a)

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.

Amortization Schedule: An amortization schedule is a table that shows the details of each loan payment allocated between the principal amount and the overdue interest along with the beginning and ending balance of the loan. From the amortization schedule of the loan, the periodical interest expense, total interest expense and total payment made are known.

To prepare: An amortization table for the installment note.

Answer 7

Chapter 14, Problem 14.12EX

a)

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.

Amortization Schedule: An amortization schedule is a table that shows the details of each loan payment allocated between the principal amount and the overdue interest along with the beginning and ending balance of the loan. From the amortization schedule of the loan, the periodical interest expense, total interest expense and total payment made are known.

To prepare: An amortization table for the installment note.

Answer 8

b)

To determine

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

Answer 9

b)

To determine

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

Answer 10

To determine

To Journalize: The first annual payment on the note.

Answer 11

To determine

To Journalize: The first annual payment on the note.

Answer 12

To determine

To Journalize: The second annual payment on the note.

Answer 13

To determine

To Journalize: The second annual payment on the note.

Answer 14

To determine

To Journalize: The third annual payment on the note.

Answer 15

To determine

To Journalize: The third annual payment on the note.

Answer 16

To determine

To Journalize: The fourth annual payment on the note.

Answer 17

To determine

To Journalize: The fourth annual payment on the note.

Answer 18

c)

To determine

To describe: How the annual note payment would be reported in the 2016 income statement.

Answer 19

c)

To determine

To describe: How the annual note payment would be reported in the 2016 income statement.

Answer 20

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Answer 21

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Answer 22

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Answer 23

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Solution Summary: The author explains how to prepare an amortization schedule for an installment note.

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

To Journalize: The first annual payment on the note.

To Journalize: The second annual payment on the note.

To Journalize: The third annual payment on the note.

To Journalize: The fourth annual payment on the note.

To describe: How the annual note payment would be reported in the 2016 income statement.

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Chapter 14 Solutions