Notes payable Notes Payable is a written promise to pay a certain amount on a future date, with certain percentage of interest. Companies use to issue notes payable to meet short-term financing needs. Amortization Schedule A schedule that gives the detail about each loan payment and shows the allocation of principal and interest over the life of the note, or bond is called amortization schedule. To Prepare: The journal entry to record the issue of notes by Incorporation A.

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Answer 1

Question

Chapter 14, Problem 14.17E

(1)

To determine

Notes payable

Notes Payable is a written promise to pay a certain amount on a future date, with certain percentage of interest. Companies use to issue notes payable to meet short-term financing needs.

Amortization Schedule

A schedule that gives the detail about each loan payment and shows the allocation of principal and interest over the life of the note, or bond is called amortization schedule.

To Prepare: The journal entry to record the issue of notes by Incorporation A.

(2)

To determine

To Prepare: The amortization schedule for three year of notes payable.

(3)

(a)

To determine

To Prepare: The journal entry to record interest on December 31, 2018.

(b)

To determine

To Prepare: The journal entry to record the payment of the note at maturity.

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Answer 2

Question

Chapter 14, Problem 14.17E

(1)

To determine

Notes payable

Notes Payable is a written promise to pay a certain amount on a future date, with certain percentage of interest. Companies use to issue notes payable to meet short-term financing needs.

Amortization Schedule

A schedule that gives the detail about each loan payment and shows the allocation of principal and interest over the life of the note, or bond is called amortization schedule.

To Prepare: The journal entry to record the issue of notes by Incorporation A.

(2)

To determine

To Prepare: The amortization schedule for three year of notes payable.

(3)

(a)

To determine

To Prepare: The journal entry to record interest on December 31, 2018.

(b)

To determine

To Prepare: The journal entry to record the payment of the note at maturity.

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Answer 3

Question

Chapter 14, Problem 14.17E

(1)

To determine

Notes payable

Notes Payable is a written promise to pay a certain amount on a future date, with certain percentage of interest. Companies use to issue notes payable to meet short-term financing needs.

Amortization Schedule

A schedule that gives the detail about each loan payment and shows the allocation of principal and interest over the life of the note, or bond is called amortization schedule.

To Prepare: The journal entry to record the issue of notes by Incorporation A.

(2)

To determine

To Prepare: The amortization schedule for three year of notes payable.

(3)

(a)

To determine

To Prepare: The journal entry to record interest on December 31, 2018.

(b)

To determine

To Prepare: The journal entry to record the payment of the note at maturity.

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Answer 4

Question

Chapter 14, Problem 14.17E

(1)

To determine

Notes payable

Notes Payable is a written promise to pay a certain amount on a future date, with certain percentage of interest. Companies use to issue notes payable to meet short-term financing needs.

Amortization Schedule

A schedule that gives the detail about each loan payment and shows the allocation of principal and interest over the life of the note, or bond is called amortization schedule.

To Prepare: The journal entry to record the issue of notes by Incorporation A.

(2)

To determine

To Prepare: The amortization schedule for three year of notes payable.

(3)

(a)

To determine

To Prepare: The journal entry to record interest on December 31, 2018.

(b)

To determine

To Prepare: The journal entry to record the payment of the note at maturity.

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Answer 5

Chapter 14, Problem 14.17E

(1)

To determine

Notes payable

Notes Payable is a written promise to pay a certain amount on a future date, with certain percentage of interest. Companies use to issue notes payable to meet short-term financing needs.

Amortization Schedule

A schedule that gives the detail about each loan payment and shows the allocation of principal and interest over the life of the note, or bond is called amortization schedule.

To Prepare: The journal entry to record the issue of notes by Incorporation A.

(2)

To determine

To Prepare: The amortization schedule for three year of notes payable.

(3)

(a)

To determine

To Prepare: The journal entry to record interest on December 31, 2018.

(b)

To determine

To Prepare: The journal entry to record the payment of the note at maturity.

Answer 6

Chapter 14, Problem 14.17E

(1)

To determine

Notes payable

Notes Payable is a written promise to pay a certain amount on a future date, with certain percentage of interest. Companies use to issue notes payable to meet short-term financing needs.

Amortization Schedule

A schedule that gives the detail about each loan payment and shows the allocation of principal and interest over the life of the note, or bond is called amortization schedule.

To Prepare: The journal entry to record the issue of notes by Incorporation A.

Answer 7

Chapter 14, Problem 14.17E

(1)

To determine

Notes payable

Notes Payable is a written promise to pay a certain amount on a future date, with certain percentage of interest. Companies use to issue notes payable to meet short-term financing needs.

Amortization Schedule

A schedule that gives the detail about each loan payment and shows the allocation of principal and interest over the life of the note, or bond is called amortization schedule.

To Prepare: The journal entry to record the issue of notes by Incorporation A.

Answer 8

(2)

To determine

To Prepare: The amortization schedule for three year of notes payable.

Answer 9

(2)

To determine

To Prepare: The amortization schedule for three year of notes payable.

Answer 10

(3)

(a)

To determine

To Prepare: The journal entry to record interest on December 31, 2018.

Answer 11

(3)

(a)

To determine

To Prepare: The journal entry to record interest on December 31, 2018.

Answer 12

(b)

To determine

To Prepare: The journal entry to record the payment of the note at maturity.

Answer 13

(b)

To determine

To Prepare: The journal entry to record the payment of the note at maturity.

Answer 14

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Answer 15

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Answer 16

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Answer 17

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Solution Summary: The author explains that notes payable are written promises to pay certain amounts on a future date, with certain percentage of interest. The issue price of notes is 484,712.

To Prepare: The amortization schedule for three year of notes payable.

To Prepare: The journal entry to record interest on December 31, 2018.

To Prepare: The journal entry to record the payment of the note at maturity.

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Chapter 14 Solutions