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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Complete part a, b and c.

Problem 11 On January 1, 2020, Molina Company sold a special machine that had a cash price of P900,000. The buyer paid P100,000 cash and signed a 4-year note. The note specified that it would be paid off in four equal annual payments of P274,565 each starting on December 31, 2020. The payments include 14% interest. 1. The carrying amount of the receivable on December 31, 2020 is

Problem 5.1

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

Ch. 14 - How is periodic interest determined for...Ch. 14 - As a general rule, how should long-term...Ch. 14 - How are bonds and notes the same? How do they...Ch. 14 - What information is contained in a bond indenture?...Ch. 14 - On January 1, 2018, Brandon Electronics issued 85...Ch. 14 - How is the price determined for a bond (or bond...Ch. 14 - A zero-coupon bond pays no interest. Explain.Ch. 14 - Prob. 14.8Q Ch. 14 - Compare the two commonly used methods of...Ch. 14 - Prob. 14.10Q

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