a) Journal entry
Date | General Journal | Debit | Credit |
Jan 1 | Cash | 360000 | |
Notes payable | 360000 | ||
(To record note issue) |
b) Interest expense = 360000*8% = 28800
Principal = 90164-28800 = 61364
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...
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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...
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Exercise 10-13 Installment note entries LO C1 On January 1, 2019, Eagle Company borrows $15,000 cash by signing a four-year, 7% installment note. The note requires four equal payments of $4,428, 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.)
Exercise 10-13 Installment note entries LO C1 On January 1, 2019, Eagle Company borrows $16,000 cash by signing a four-year, 5% installment note. The note requires four equal payments of $4,512, 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 Journal entry worksheet...
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,...
Exercise 10-11 Installment note entries LO C1 On January 1, 2017, Eagle 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 2017 through 2020. (Table 81. Table B. 2. Table B3, and Table 3.4) (Use appropriate factor(s) from the tables provided. Round your intermediate calculations and final answers to the nearest dollar amount. Round all table values to...