Homework Answers
Correct answer is option D. After the first payment is made, $5000 would be shown as the current portion due on the long term note.
Long term note is issued when the liability to pay is for more than year. And the part of it which is to be paid within a year is shown as its current portion. Next instalment of principal repayment is of $5000 which is to be paid within a year. So it would be shown as the current portion due on the long term note.
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Entries for Installment Note Transactions On the first day of the fiscal year, Shiller Company borrowed $36,000 by givin...
Entries for Installment Note Transactions
On the first day of the fiscal year, Shiller Company borrowed
$36,000 by giving a four-year, 8% installment note to Soros Bank.
The note requires annual payments of $10,942, with the first
payment occurring on the last day of the fiscal year. The first
payment consists of interest of $2,880 and principal repayment of
$8,062.
Journalize the entries to record the following:
a1. Issued the installment note for
cash on the first day of the fiscal...
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1, 2020 for $308,000. A down payment of $28,000 was required and
the remainder was financed with a 7% instalment loan payable over 5
years with payments made on a quarterly basis. The quarterly
payments required are $16,714 and include both interest and
principal. The following is an extract from the loan amortization
table the supplier provided to DueNorth :
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Entries for Installment Note Transactions
On the first day of the fiscal year, Shiller Company borrowed
$36,000 by giving a four-year, 8% installment note to Soros Bank.
The note requires annual payments of $10,942, with the first
payment occurring on the last day of the fiscal year. The first
payment consists of interest of $2,880 and principal repayment of
$8,062.
Journalize the entries to record the following:
a1. Issued the installment note for
cash on the first day of the fiscal...
The following instalment payment schedule is for a long-term bank loan payable: Reduction of Interest Cash Payment Principal Interest Period Principal Balance Expense $79,000.00 Issue date $4,740.00 $18,754.32 $14,014.32 64,985.68 1 2 18,754.32 3,899.14 14,855.18 50,130.50 15,746.49 3 18,754.32 3,007.83 34,384.01 4 18,754.32 2,063.04 16,691.28 17,692.73 5 18,754.32 1,061.59 17,692.73 0.00 Is the above schedule a fixed principal plus interest or blended principal and interest payment schedule? LINK TO TEXT Assuming payments are made annually, what is the interest rate...
DueNorth Mining Inc. purchased some crushing equipment on July 1,
2020 for $300,000. A down payment of $30,000 was required and the
remainder was financed with a 8% instalment loan payable over 5
years with payments made on a quarterly basis. The quarterly
payments required are $16,512 and include both interest and
principal. The following is an extract from the loan amortization
table the supplier provided to DueNorth :
Payment
Dates
Beginning
loan
balance
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Ending
loan
balance...
Use the following to answer questions 17 - 19: V January 1, 2020, Hector Company obtained a $50.000, four-year, 7% installment note from Sylvester Bank. The note requires four annual payments of $14,761, beginning on December 31, 2020. 17. Total interest expense Hector would report on its year end December 31, 2020 income statement is: $3,500 B. $14,761 C. $11,261 D. $0 The balance in Notes Payable at December 31, 2020, after the first payment is made would be: A....
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Dates
Beginning
loan
balance
Payment
Interest
Principal
Ending
loan
balance...
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