Homework Answers
1.
| No. | Date | General Journal | Debit | Credit |
| 1 | Jan 01 | Cash | $370,000 | |
| Note payable | $370,000 | |||
| ( To record issuance of note) |
2.
Interest expense = Note payable x Interest rate x Time period
= 370,000 x 4% x 1
= $14,800
Principal = Installment - Interest
= 83,112-14,800
= $68,312
| Interest expense | $14,800 |
| Principal reduction | $68,312 |
Kindly comment if you need further assistance. Thanks‼!
Add Answer to:
Check my work On January 1, MM Co. borrows $370,000 cash from a bank and in...
4100 Saved On January 1, MM Co, borrows $340,000 cash from a bank and in return...
4100 Saved On January 1, MM Co, borrows $340,000 cash from a bank and in return signs an 8% installment note for five annual payments of $85,155 each. 1. Prepare the journal entry to record issuance of the note. 2. For the first $85,155 annual payment at December 31, what amount goes toward interest expense? What amount goes toward principal reduction of the note? 0:24 Complete this question by entering your answers in the tabs below. Required 1 Required 2...
On January 1, MM Co. borrows $350,000 cash from a bank and in return signs an...
On January 1, MM Co. borrows
$350,000 cash from a bank and in return signs an 4% installment
note for five annual payments of $78,619 each. 1. Prepare the
journal entry to record issuance of the note. 2. For the first
$78,619 annual payment at December 31, what amount goes toward
interest expense? What amount goes toward principal reduction of
the note?
On January 1, MM Co. borrows $350,000 cash from a bank and in return signs an 4% installment...
On January 1, 2018, MM Co. borrows $330,000 cash from a bank and in return signs...
On January 1, 2018, MM Co. borrows $330,000 cash from a bank and in return signs an 4% installment note for five annual payments of $74,127 each, with the first payment due one year after the note is signed. 1. Prepare the journal entry to record issuance of the note 2. For the first $74127 annual payment at December 31, 2018, what amount goes toward interest expense? What amount goes toward principal reduction of the note? & Answer is complete...
QS 10-12 Issuance and interest for installment note LO C1 On January 1, MM Co. borrows...
QS 10-12 Issuance and interest for installment note LO C1 On January 1, MM Co. borrows $280,000 cash from a bank and in return signs an 8% installment note for five annual payments of $70,128 each. 1. Prepare the journal entry to record issuance of the note. 2. For the first $70,128 annual payment at December 31, what amount goes toward interest expense? What amount goes toward principal reduction of the note? Complete this question by entering your answers in...
QS 10-12 Issuance and interest for installment note LO C1 On January 1, MM Co. borrows...
QS 10-12 Issuance and interest for installment note LO C1 On January 1, MM Co. borrows $360,000 cash from a bank and in return signs an 8% installment note for five annual payments of $90,164 each. 1. Prepare the journal entry to record issuance of the note. 2. For the first $90,164 annual payment at December 31, what amount goes toward interest expense? What amount goes toward principal reduction of the note?
Required information [The following information applies to the questions displayed below.) On January 1, MM Co....
Required information [The following information applies to the questions displayed below.) On January 1, MM Co. borrows $310,000 cash from a bank and in return signs an 4% installment note for five annual payments of $69.634 each. 1. Prepare the journal entry to record issuance of the note. 2. For the first $69,634 annual payment at December 31, what amount goes toward interest expense? What amount goes toward principal reduction of the note? Complete this question by entering your answers...
Check my work On November 1, 2019, Norwood borrows $510,000 cash from a bank by signing...
Check my work On November 1, 2019, Norwood borrows $510,000 cash from a bank by signing a five-year installment note bearing 9% Interest. The note requires equal payments of $131,116 each year on October 31. Required: 1. Complete an amortization table for this installment note. 2. Prepare the journal entries in which Norwood records the following: (a) Accrued interest as of December 31, 2019 (the end of its annual reporting period). (b) The first annual payment on the note. Complete...
On January 1, 2019, Eagle Company borrows $35,000 cash by signing a four-year, 7% installment note....
On January 1, 2019, Eagle Company borrows $35,000 cash by signing a four-year, 7% installment note. The note requires four equal payments of $10,333, consisting of accrued interest and principal on December 31 of each year from 2019 through 2022 Prepare the journal entries for Eagle to record the note's issuance and the four payments (Round your intermediate calculations and final answers to the nearest dollar amount.) View transaction list Eagle borrows $35,000 cash by signing a four-year, 7% installment...
Enviro Company issues 11.00%, 10-year bonds with a par value of $440,000 and semiannual interest payments....
Enviro Company issues 11.00%, 10-year bonds with a par value of $440,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 8.00%, which implies a selling price of 128.125. The straight-line method is used to allocate Interest expense. 1. Using the implied selling price of 128.125. what are the issuer's cash proceeds from issuance of these bonds? 2. What total amount of bond interest expense will be recognized over the life of these...
On January 1, 2019, Eagle Company borrows $24,000 cash by signing a four-year, 8% installment note.
Exercise 10-13 Installment note entries LO C1 On January 1, 2019, Eagle Company borrows $24,000 cash by signing a four-year, 8% installment note. The note requires four equal payments of $7,246, consisting of accrued interest and principal on December 31 of each year from 2019 through 2022. Prepare the journal entries for Eagle to record the note's issuance and the four payments. (Round your intermediate calculations and final answers to the nearest dollar amount.) 1 Eagle borrows $24,000 cash by signing a four-year,...
4100 Saved On January 1, MM Co, borrows $340,000 cash from a bank and in return signs an 8% installment note for five annual payments of $85,155 each. 1. Prepare the journal entry to record issuance of the note. 2. For the first $85,155 annual payment at December 31, what amount goes toward interest expense? What amount goes toward principal reduction of the note? 0:24 Complete this question by entering your answers in the tabs below. Required 1 Required 2...
On January 1, MM Co. borrows
$350,000 cash from a bank and in return signs an 4% installment
note for five annual payments of $78,619 each. 1. Prepare the
journal entry to record issuance of the note. 2. For the first
$78,619 annual payment at December 31, what amount goes toward
interest expense? What amount goes toward principal reduction of
the note?
On January 1, MM Co. borrows $350,000 cash from a bank and in return signs an 4% installment...
On January 1, 2018, MM Co. borrows $330,000 cash from a bank and in return signs an 4% installment note for five annual payments of $74,127 each, with the first payment due one year after the note is signed. 1. Prepare the journal entry to record issuance of the note 2. For the first $74127 annual payment at December 31, 2018, what amount goes toward interest expense? What amount goes toward principal reduction of the note? & Answer is complete...
QS 10-12 Issuance and interest for installment note LO C1 On January 1, MM Co. borrows $280,000 cash from a bank and in return signs an 8% installment note for five annual payments of $70,128 each. 1. Prepare the journal entry to record issuance of the note. 2. For the first $70,128 annual payment at December 31, what amount goes toward interest expense? What amount goes toward principal reduction of the note? Complete this question by entering your answers in...
QS 10-12 Issuance and interest for installment note LO C1 On January 1, MM Co. borrows $360,000 cash from a bank and in return signs an 8% installment note for five annual payments of $90,164 each. 1. Prepare the journal entry to record issuance of the note. 2. For the first $90,164 annual payment at December 31, what amount goes toward interest expense? What amount goes toward principal reduction of the note?
Required information [The following information applies to the questions displayed below.) On January 1, MM Co. borrows $310,000 cash from a bank and in return signs an 4% installment note for five annual payments of $69.634 each. 1. Prepare the journal entry to record issuance of the note. 2. For the first $69,634 annual payment at December 31, what amount goes toward interest expense? What amount goes toward principal reduction of the note? Complete this question by entering your answers...
Check my work On November 1, 2019, Norwood borrows $510,000 cash from a bank by signing a five-year installment note bearing 9% Interest. The note requires equal payments of $131,116 each year on October 31. Required: 1. Complete an amortization table for this installment note. 2. Prepare the journal entries in which Norwood records the following: (a) Accrued interest as of December 31, 2019 (the end of its annual reporting period). (b) The first annual payment on the note. Complete...
On January 1, 2019, Eagle Company borrows $35,000 cash by signing a four-year, 7% installment note. The note requires four equal payments of $10,333, consisting of accrued interest and principal on December 31 of each year from 2019 through 2022 Prepare the journal entries for Eagle to record the note's issuance and the four payments (Round your intermediate calculations and final answers to the nearest dollar amount.) View transaction list Eagle borrows $35,000 cash by signing a four-year, 7% installment...
Enviro Company issues 11.00%, 10-year bonds with a par value of $440,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 8.00%, which implies a selling price of 128.125. The straight-line method is used to allocate Interest expense. 1. Using the implied selling price of 128.125. what are the issuer's cash proceeds from issuance of these bonds? 2. What total amount of bond interest expense will be recognized over the life of these...
Most questions answered within 3 hours.
-
An acidic solution containing gold ions is
electrolyzed, producing gaseous oxygen (from water) at the anode...
asked 9 minutes ago -
Assume that the population of Mexico is 128
million and that the population increases 1.01
percentannually....
asked 1 hour ago -
Can someone please help me add appropriate descriptive
comments to each line of code in the...
asked 1 hour ago -
Romeo wishes to throw a bouquet of flowers to Juliet, who is on
a second-story balcony,...
asked 2 hours ago -
Why is QE a controversial monetary policy tool.
A. It may lead to excessive inflation.B. By...
asked 2 hours ago -
Principles of Programming midterm study guide help!
1.)
______ Which of the following would reference the...
asked 1 hour ago -
A finite potential well has depth U0 = 2.78 eV . What is the
penetration distance...
asked 2 hours ago -
1. The bus bars of a power station are in two sections A and B
separated...
asked 2 hours ago -
Fiscal policy is the deliberate manipulation of taxes and
government spending to alter GDP, employment, inflation...
asked 3 hours ago -
evaluating an expression using only one digit and + and - as
operators ....3+5-1+7-5+8
-----------------------
stack...
asked 3 hours ago -
Two concentric current loops lie in the same plane. The smaller
loop has a radius of...
asked 4 hours ago -
1)Which of the following is an
important difference between qualified and nonqualified retirement
plans?
a. Qualified...
asked 4 hours ago