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28 Sep 2019
Please help fill in the missing blanks in the amortizationtable, and complete journal entries for number 3.
On November 1, 2015, Norwood borrows $460,000 cash from a bankby signing a five-year installment note bearing 9% interest. Thenote requires equal total payments each year on October 31. (TableB.1, Table B.2, Table B.3, and Table B.4) (Use appropriatefactor(s) from the tables provided.)
Required: 1. Complete the below table to calculate the total amount of eachinstallment payment.
Initial Cash Proceeds PV Factor Amount of annual payment $460,000 ÷ 3.8897 = $118,261
2. Complete an amortization table for this installment note.(Round your intermediate calculations to the nearest dollaramount.)
Period Ending Date
Beginning Balance Debit Interest Expense + Debit Notes Payable = Credit Cash Ending Balance 10/31/2016 $460,000 $41,400 $76,861 $118,261 $383,139 10/31/2017 383,137 34,482 83,780 118,263 10/31/2018 26,942 91,320 118,263 10/31/2019 18,723 99,539 118,263 10/31/2020 Total $121,547 $351,500 $473,050
3.
Prepare thejournal entries in which Norwood records the following:
(a) Accrued interest as of December 31, 2015 (the end of its annualreporting period).
(b) The first annual payment on the note.
Please help fill in the missing blanks in the amortizationtable, and complete journal entries for number 3.
On November 1, 2015, Norwood borrows $460,000 cash from a bankby signing a five-year installment note bearing 9% interest. Thenote requires equal total payments each year on October 31. (TableB.1, Table B.2, Table B.3, and Table B.4) (Use appropriatefactor(s) from the tables provided.)
Required: | |
1. | Complete the below table to calculate the total amount of eachinstallment payment. |
|
2. | Complete an amortization table for this installment note.(Round your intermediate calculations to the nearest dollaramount.) |
Period Ending Date
Beginning Balance | Debit Interest Expense | + Debit Notes Payable | = Credit Cash | Ending Balance | |
10/31/2016 | $460,000 | $41,400 | $76,861 | $118,261 | $383,139 |
10/31/2017 | 383,137 | 34,482 | 83,780 | 118,263 | |
10/31/2018 | 26,942 | 91,320 | 118,263 | ||
10/31/2019 | 18,723 | 99,539 | 118,263 | ||
10/31/2020 | |||||
Total | $121,547 | $351,500 | $473,050 |
3.
Prepare thejournal entries in which Norwood records the following: | |
(a) | Accrued interest as of December 31, 2015 (the end of its annualreporting period). |
(b) The first annual payment on the note.
Casey DurganLv2
28 Sep 2019