Chapter 14, Problem 14.2P

a.

To determine

Concept Introduction:

Journalizing:

In accounts, for keeping records of all the business transactions properly, journalizing is being done for the transactions. Thus, it helps to track the transactions in chronological order as well as to maintain the records too.

To prepare: The journal entry for recording issuance of the note-payable.

b.

To determine

Concept Introduction:

Amortization: Amortization refers to the method of accounting which lower the booking amount or book value of any loan or any intangible asset over the time period.

The annual payment required under the loan agreement.

c.

To determine

Concept Introduction:

Amortization: Amortization refers to the method of accounting which lower the booking amount or book value of any loan or any intangible asset over the time period.

To prepare: The amortization table for the note payable.

d.

To determine

Concept Introduction:

Journalizing:

In accounts, for keeping records of all the business transactions properly, journalizing is being done for the transactions. Thus, it helps to track the transactions in chronological order as well as to maintain the records too.

To prepare: The journal for recording the first payment as on December 31, 2018.

e.

To determine

Concept Introduction:

Notes payable: Notes payable is also known as a written promissory note in which the borrower promises to pay the amount of money to the lender on a particular time and date.

The balance of note payable on December 31, 2024, after the payment and the interest expense for the year.

f.

To determine

Concept Introduction:

Journalizing:

In accounts, for keeping records of all the business transactions properly, journalizing is being done for the transactions. Thus, it helps to track the transactions in chronological order as well as to maintain the records too.

To prepare: The journal for recording the payment of the note at maturity.