None Exercise 10-2A (Algo) Amortization schedule for an installment note LO 10-1On January 1, Year 1, Beatie Company borrowed $250,000 cash from Central Bank by issuing a five-year, 6 percent note. The principaland interest are to be paid by making annual payments in the amount of $59,349. Payments are to be made December 31 of eachyear, beginning December 31, Year 1.RequiredPrepare an amortization schedule for the interest and principal payments for the five-year period.Note: Round your answers to the nearest dollar amount.BEATIE COMPANYAmortization ScheduleYearPrincipalBalance onJanuary 1CashPaymentsApplied toInterestApplied toPrincipalPrincipalBalance End ofDecember 31PeriodYear 1Year 2Year 3Year 4Year 5

Step 1:An amortization schedule for the interest and principal payments is prepared hereunder:…

Answered: Exercise 10-2A (Algo) Amortization…

Cornerstones of Financial Accounting

4th Edition

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Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter9: Long-term Liabilities

Section: Chapter Questions

Problem 69E: Exercise Issuance and Interest Amortization for Zero Coupon Note (Straight Line) Kerwin Company...

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Exercise Issuance and Interest Amortization for Zero Coupon Note (Straight Line) Kerwin Company borrowed $10,000 on a 2-year, zero coupon note. The note was issued on January 1, 2020. The face amount of the note, $12,544, is to be paid at maturity on December 31, 2021. Required: Assuming straight line amortization, calculate the interest expense for 2020 and 2021. Prepare the entries to recognize the borrowing, the first years interest expense, and the second years interest expense plus redemption of the note at maturity.
Entries for installment note transactions On January 1, 20Y2, Hebron Company issued a 175,000, five-year, 8% installment note to Ventsam Bank. The note requires annual payments of 43,830, beginning on December 31, 20Y2. Journalize the entries to record the following:
Problem 8-7 (with solution) On January 1, 2021, South Company acquired a building for 5,000,000. The entity paid 500,000 down and signed a noninterest bearing note for the balance which is payable in 3 equal annual installments every December 31 of each year. The prevailing interest rate for a note of this type is 12%. The present value of an ordinary annuity of 1 for three periods is 2.4018. Required: 1. Prepare journal entries to record purchase of building on January 1, 2021, first installment payment on December 31, 2021` and interest expense for 2021.
Exercise 10-2A Amortization schedule for an installment note On January 1, 2011, Cobb Co. borrowed $80,000 cash from First Bank by issuing a four-year, 6 percent note. The principal and interest are to be paid by making annual payments in the amount of $23,087. Payments are to be made December 31 of each year, beginning December 31, 2011. Required Prepare an amortization schedule for the interest and principal payments for the four-year period. LO 1
ces A partial amortization schedule for a 10-year note payable that Mabry Company issued on January 1, Year 1, is shown as follows. Principal Balance Applied to Applied to Accounting Period Year 1 January 1 $200,000 Cash Payment Interest Principal $27,174 Year 2 Year 3 184,826 168,742 27,174 $12,000 11,090 $15,174 16,084 27,174 10,125 17,049 Required a. What rate of interest is Mabry Company paying on the note? b. Using a financial statements model, record the appropriate amounts for the following two events: (1) January 1, Year 1, issue of the note payable. (2) December 31, Year 1, payment on the note payable. c. If the company earned $62,000 cash revenue and paid $45,000 in cash expenses in addition to the interest in Year 1, what is the amount of each of the following? (1) Net income for Year 1. (2) Cash flow from operating activities for Year 1. (3) Cash flow from financing activities for Year 1. d. What is the amount of interest expense on this loan for Year 4? Complete this…

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