A five-year, 4%, $80,000 note payable is issued on January 1. Terms include fixed annual principal...
A five-year, 4%, $80,000 note payable is issued on January 1. Terms include fixed annual principal payments of $16,000, plus interest on the outstanding balance. The entry to record the first instalment payment will include a
|
debit to Notes Payable of $16,000. |
|
credit to Interest Expense of $3,200. |
|
credit to Notes Payable of $12,800. |
|
debit to Cash of $16,000. |
Homework Answers
Answer : A = Debit to Notes payable of $ 16,000.
| Particulars | Debit | Credit |
| Notes Payable | $ 16,000 | |
| Interest Expenses ( $ 80000 * 4 % ) | $ 3,200 | |
| Cash account | $ 19,200 |
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A five-year, 4%, $80,000 note payable is issued on January 1.
Terms include fixed annual principal...
A five-year, 4%, $80,000 note payable is issued on January 1. Terms include fixed annual principal...
A five-year, 4%, $80,000 note payable is issued on January 1.
Terms include fixed annual principal payments of $16,000, plus
interest on the outstanding balance. The entry to record the first
instalment payment will include a
debit to Notes Payable of $16,000.
credit to Interest Expense of $3,200.
credit to Notes Payable of $12,800.
debit to Cash of $16,000.
A five-year, 4%, $80,000 note payable is issued on January 1. Terms include fixed annual principal...
A five-year, 4%, $80,000 note payable is issued on January 1.
Terms include fixed annual principal payments of $16,000, plus
interest on the outstanding balance. The entry to record the first
instalment payment will include a
debit to Notes Payable of $16,000.
credit to Interest Expense of $3,200.
credit to Notes Payable of $12,800.
debit to Cash of $16,000.
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A five-year, 4%, $80,000 note payable is issued on January 1.
Terms include fixed annual principal payments of $16,000, plus
interest on the outstanding balance. The entry to record the first
instalment payment will include a
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credit to Interest Expense of $3,200.
credit to Notes Payable of $12,800.
debit to Cash of $16,000.
A five-year, 4%, $80,000 note payable is issued on January 1.
Terms include fixed annual principal payments of $16,000, plus
interest on the outstanding balance. The entry to record the first
instalment payment will include a
debit to Notes Payable of $16,000.
credit to Interest Expense of $3,200.
credit to Notes Payable of $12,800.
debit to Cash of $16,000.
Brief Exercise 10-7 Assad Inc. issued a five-year, 6% instalment note payable, with fixed principal payments plus interest, due annually. The following instalment payment schedule is partially completed: Fill in the missing amounts. Interest Period Cash Payment Interest Expense Reduction of Principal Principal Balance $70,000 Issue date $18,200 56,000 17,360 3,360 2,520 15,680 1,680 14,000 14,840 840 LINK TO TEXT What are the current and non-current portions of the note at the end of period 3? Current portion $ Non-current...
Blossom Lake Corp. issues a $660,000, 4-year, 3% note payable on March 31, 2021. The terms provide for fixed principal payments annually of $165,000. Prepare the journal entries to record the note on March 31, 2021, and the first payment on March 31, 2022. (Credit account titles are automatically Indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles...
On January 1, Gemstone Company obtained a $165,000, 10-year, 7% ins nt note from Guarantee Bank. The note requires annual payments of $23,492, with the first payment occurring on the last day of the fiscal year. The first payment consists of interest of $11,550 and principal repayment of $12.942. The journal entry to record the payment of the first annual amount due on the note would include a Oa. credit to interest Payable for $11,550 Ob. debit to Cash for...
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