Homework Answers
a)The above schedule is blended principal and interest payment schedule since cash installment or payment include both principal and interest (Generally we can call it as equated annual installment)
b) Interest on bank loan:
Interest rate =Interest amount/Principal outstanding*100
=$5400/$108000*100
=5%
Interest rate =5%
Add Answer to:
*Exercise 10-7 (Part Level Submission) The following instalment payment schedule is for a long-term bank loan...
Exercise 10-7 (Part Level Submission) The following instalment payment schedule is for a long-term bank loan payable: C...
Exercise 10-7 (Part Level Submission) The following instalment payment schedule is for a long-term bank loan payable: Cash Payment Interest Expense Reduction of Principal Interest Period Issue date $19,545.28 $24,945.28 24,945.28 24,945.28 24,945.28 24,945.28 $5,400.00 4,422.74 3,396.61 2,319.18 1,187.87 20,522.54 21,548.67 22,626.10 23,757.41 Principal Balance $108,000.00 88,454.72 67,932.18 46,383.51 23,757.41 0.00 (a) Is the above schedule a fixed principal plus interest or blended principal and interest payment schedule?
The following instalment payment schedule is for a long-term bank loan payable: Reduction of Interest Cash...
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...
(c) Prepare the journal entry to record the first instalment payment. (Round answers to 2 decimal...
(c) Prepare the journal entry to record the first instalment payment. (Round answers to 2 decimal places, e.g. 1.25. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Exercise 10-7 (Part Level Submission) The following instalment payment schedule is for a long-term bank loan payable: Reduction of Interest Cash Payment Principal Interest Period Expense Principal Balance Issue date $108,000.00 $24,945.28 $5,400.00 $19,545.28 1 88,454.72 2 4,422.74 24,945.28 20,522.54...
Brief Exercise 10-8 Hyatt Inc. issued a five-year, 7% instalment loan payable, with blended principal and...
Brief Exercise 10-8 Hyatt Inc. issued a five-year, 7% instalment loan payable, with blended principal and interest payments due annually. The following instalment payment schedule is partially completed: Fill in the missing amounts. (Round answers to o decimal places, e.g. 5,275.) Cash Payment Interest Expense Interest Period Issue date Reduction of Principal Principal Balance $51,000 $12,439 $ 8,869 42,131 2,949 32,641 10,154 1,574 11,622 817* 11,622 *Adjusted for rounding differences. LINK TO TEXT What are the current and non-current portions...
Brief Exercise 10-7 Assad Inc. issued a five-year, 6% instalment note payable, with fixed principal payments...
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...
Exercise 10-5 La Porte Company obtained a 10-year, 5%, $164,000 mortgage loan to finance the purchase...
Exercise 10-5 La Porte Company obtained a 10-year, 5%, $164,000 mortgage loan to finance the purchase of a warehouse at March 31, 2017. The terms provide for semi-annual instalment payments on September 30 and March 31 Record the obtaining of the mortgage payable on March 31, 2017. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Date Debit Credit Mar. 31 SHOW LIST OF ACCOUNTS LINK TO TЕXT Record the...
Exercise 10-5 La Porte Company obtained a 10-year, 5 % , $187 ,000 mortgage loan to...
Exercise 10-5 La Porte Company obtained a 10-year, 5 % , $187 ,000 mortgage loan to finance the purchase of a warehouse at March 31, 2017. The terms provide for semi-annual instalment payments on September 30 and March 31. Record the obtaining of the mortgage payable on March 31, 2017. (Credit account titles are automatically indented when the amount entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Mar. 31 SHOW IIST OF ACCOUNTS LINK TO TEX...
Exercise 10-5 Ste. Anne Corp. obtained a 10-year, 5%, $136,000 mortgage loan to finance the purchase...
Exercise 10-5 Ste. Anne Corp. obtained a 10-year, 5%, $136,000 mortgage loan to finance the purchase of a building at December 31, 2017. The terms provide for semi-annual instalment payments on June 30 and December 31. Your answer is correct. Record the obtaining of the mortgage payable on December 31, 2017. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31 Cash 136000 2 T Mortgage...
Exercise 10-29 (Part Level Submission) Crane Company receives $246,000 when it issues a $246,000, 10%, mortgage...
Exercise 10-29 (Part Level Submission) Crane Company receives $246,000 when it issues a $246,000, 10%, mortgage note payable to finance the construction of a building at December 31, 2022. The terms provide for annual installment payments of $41,000 on December 31. v (1) Prepare an amortization schedule of a mortgage note for two years. Annual Interest Period Cash Payment Interest Expense Reduction of Principal Principal Balance Issue date 12/31/23 12/31/24 SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO VIDEO...
Exercise 14-22 (Part Level Submission) On December 31, 2020, American Bank enters into a debt restructuring...
Exercise 14-22 (Part Level Submission)
On December 31, 2020, American Bank enters into a debt
restructuring agreement with Flint Company, which is now
experiencing financial trouble. The bank agrees to restructure a
12%, issued at par, $3,890,000 note receivable by the following
modifications:
1.
Reducing the principal obligation from $3,890,000 to
$3,112,000.
2.
Extending the maturity date from December 31, 2020, to January
1, 2024.
3.
Reducing the interest rate from 12% to 10%.
Flint pays interest at the end...
Exercise 10-7 (Part Level Submission) The following instalment payment schedule is for a long-term bank loan payable: Cash Payment Interest Expense Reduction of Principal Interest Period Issue date $19,545.28 $24,945.28 24,945.28 24,945.28 24,945.28 24,945.28 $5,400.00 4,422.74 3,396.61 2,319.18 1,187.87 20,522.54 21,548.67 22,626.10 23,757.41 Principal Balance $108,000.00 88,454.72 67,932.18 46,383.51 23,757.41 0.00 (a) Is the above schedule a fixed principal plus interest or blended principal and interest payment schedule?
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...
(c) Prepare the journal entry to record the first instalment payment. (Round answers to 2 decimal places, e.g. 1.25. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Exercise 10-7 (Part Level Submission) The following instalment payment schedule is for a long-term bank loan payable: Reduction of Interest Cash Payment Principal Interest Period Expense Principal Balance Issue date $108,000.00 $24,945.28 $5,400.00 $19,545.28 1 88,454.72 2 4,422.74 24,945.28 20,522.54...
Brief Exercise 10-8 Hyatt Inc. issued a five-year, 7% instalment loan payable, with blended principal and interest payments due annually. The following instalment payment schedule is partially completed: Fill in the missing amounts. (Round answers to o decimal places, e.g. 5,275.) Cash Payment Interest Expense Interest Period Issue date Reduction of Principal Principal Balance $51,000 $12,439 $ 8,869 42,131 2,949 32,641 10,154 1,574 11,622 817* 11,622 *Adjusted for rounding differences. LINK TO TEXT What are the current and non-current portions...
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...
Exercise 10-5 La Porte Company obtained a 10-year, 5%, $164,000 mortgage loan to finance the purchase of a warehouse at March 31, 2017. The terms provide for semi-annual instalment payments on September 30 and March 31 Record the obtaining of the mortgage payable on March 31, 2017. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Date Debit Credit Mar. 31 SHOW LIST OF ACCOUNTS LINK TO TЕXT Record the...
Exercise 10-5 La Porte Company obtained a 10-year, 5 % , $187 ,000 mortgage loan to finance the purchase of a warehouse at March 31, 2017. The terms provide for semi-annual instalment payments on September 30 and March 31. Record the obtaining of the mortgage payable on March 31, 2017. (Credit account titles are automatically indented when the amount entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Mar. 31 SHOW IIST OF ACCOUNTS LINK TO TEX...
Exercise 10-5 Ste. Anne Corp. obtained a 10-year, 5%, $136,000 mortgage loan to finance the purchase of a building at December 31, 2017. The terms provide for semi-annual instalment payments on June 30 and December 31. Your answer is correct. Record the obtaining of the mortgage payable on December 31, 2017. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31 Cash 136000 2 T Mortgage...
Exercise 10-29 (Part Level Submission) Crane Company receives $246,000 when it issues a $246,000, 10%, mortgage note payable to finance the construction of a building at December 31, 2022. The terms provide for annual installment payments of $41,000 on December 31. v (1) Prepare an amortization schedule of a mortgage note for two years. Annual Interest Period Cash Payment Interest Expense Reduction of Principal Principal Balance Issue date 12/31/23 12/31/24 SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO VIDEO...
Exercise 14-22 (Part Level Submission)
On December 31, 2020, American Bank enters into a debt
restructuring agreement with Flint Company, which is now
experiencing financial trouble. The bank agrees to restructure a
12%, issued at par, $3,890,000 note receivable by the following
modifications:
1.
Reducing the principal obligation from $3,890,000 to
$3,112,000.
2.
Extending the maturity date from December 31, 2020, to January
1, 2024.
3.
Reducing the interest rate from 12% to 10%.
Flint pays interest at the end...
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