Question

Answer 1

B7 x fc date annual installment present value annuity factor (11%, 6 periods) present value of note $ 157,000 4.23054 $ 664,195 amortization schedule date installment payment interest expense principal repayment carrying value of loan $ 580,256 $ 487,084 31 December 2020 31 December 2021 $ 157,000 $ 157,000 $ 73,061 $63,828 $ 83,939 $ 93,172 date account titles end explanation debit credit $ 664,195 02 January 2020 equipment notes payable (to record purchase of equipment) $ 664,195 date account titles end explanation debit credit $ 73,061 $ 83,939 31 December 2020 interest expense notes payable cash (to record payment of installment) $ 157,000

B27 X fic date DE F date I account titles end explanation | debit credit $ 63,828 $93,172 31 December 2021 interest expense notes payable cash (to record payment of installment) $ 157,000 date account titles end explanation debit credit $ 83,024 31 December 2020 depreciation expense-equipment accumulated depreciation-equipment (to record depreciation expense) $ 83,024

for formulas and calculations, refer to the image below -

X for date annual installment 157000 present value annuity factor (11%, 6 periods) | =ROUND(PV(11%,6,-1),5) present value of note =ROUND(D2*D3,0) amortization schedule date installment payment interest expense principal repayment carrying value of loan 44196 =157000 44561 =157000 =ROUND(D4*11%,0) =ROUND(F8*11%,0) =C8-08 =C9-D9 =D4-E8 =F8-E9 date account titles end explanation debit credit 43832 equipment notes payable (to record purchase of equipment) =D14 date account titles end explanation debit cr credit interest expense notes payable cash (to record payment of installment)

B27 X fx date B date account titles end explanation debit credit =D9 =E9 44561 interest expense notes payable cash (to record payment of installment) -09 date account titles end explanation debit credit =ROUND(D14/8,0) 44196 depreciation expense-equipment accumulated depreciation equipment (to record depreciation expense) =D37

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