Question

On January 1, 2017, Eagle borrows $31,000 cash by signing a four-year, 8% installment note. The...

On January 1, 2017, Eagle borrows $31,000 cash by signing a four-year, 8% installment note. The note requires four equal payments of $9,360, consisting of accrued interest and principal on December 31 of each year from 2017 through 2020.
Prepare the journal entries for Eagle to record the loan on January 1, 2017, and the four payments from December 31, 2017, through December 31, 2020.
  

No Date General Journal Debit Credit
1 Jan 01, 2017 Cash 31,000
31,000
2 Dec 31, 2017 Interest expense
Notes payable
Cash 9,360
3 Dec 31, 2018 Interest expense
Notes payable
Cash
4 Dec 31, 2019 Interest expense
Notes payable
Cash
5 Dec 31, 2020 Interest expense
Notes payable
Cash
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1
Jan-1-17 Cash 31000
     Notes payable 31000
Dec-31-17 Interest expense 2480 =31000*8%
Notes payable 6880
      Cash 9360
Dec-31-18 Interest expense 1930 =(31000-6880)*8%
Notes payable 7430
      Cash 9360
Dec-31-17 Interest expense 1335 =(31000-6880-7430)*8%
Notes payable 8025
      Cash 9360
Dec-31-17 Interest expense 695 =(31000-6880-7430-8025)*8%
Notes payable 8665
      Cash 9360
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
In January 1, 2017 Eagle borrows $25000 cash by signing a four-year, 7% installment note. The...
In January 1, 2017 Eagle borrows $25000 cash by signing a four-year, 7% installment note. The note requires four equal payments of $7,381, consisting of accrued interest and principle on December 31 of each year from 2017 through 2020. (Use appropriate factors from the tables. Round your intermediate calculations and final answer to the nearest dollar amounts. Round all table values to 4 decimal places, and use the rounded table values in calculations.) Prepare the journal entries for Eagle to...
On January 1, 2016, Eagle borrows $26,000 cash by signing a four-year, 8% installment note. The...
On January 1, 2016, Eagle borrows $26,000 cash by signing a four-year, 8% installment note. The note requires four equal total payments of accrued interest and principal on December 31 of each year from 2016 through 2019. (Table B.1, Table B.2, Table B.3, and Table B.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 4 decimal places, and use the rounded table values in...
Exercise 10-11 Installment note entries LO C1 On January 1, 2018, Eagle borrows $20,000 cash by...
Exercise 10-11 Installment note entries LO C1 On January 1, 2018, Eagle borrows $20,000 cash by signing a four-year, 7% installment note. The note requires four equal payments of $5,905, consisting of accrued interest and principal on December 31 of each year from 2018 through 2021. (Table B.1, Table B.2, Table B.3, and Table B.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 4...
On January 1, 2016, Eagle borrows $25,000 cash by signing a four-year, 7% installment note. The...
On January 1, 2016, Eagle borrows $25,000 cash by signing a four-year, 7% installment note. The note requires four equal total payments of accrued interest and principal on December 31 of each year from 2016 through 2019. (Table B.1, Table B.2, Table B.3, and Table B.4) (Use appropriate factor(s) from the tables provided.) 1. Compute the amount of each of the four equal total payments. 2. Prepare an amortization table for this installment note. (Round all amounts to the nearest...
P2. On January 1, 2015 Tommy Inc. borrows $100,000 cash by signing a four-year, 7% installment...
P2. On January 1, 2015 Tommy Inc. borrows $100,000 cash by signing a four-year, 7% installment note. The note requires four equal payments of $29,523 of accrued interest and principal on December 31 of each year for the next four years. The first payment is due Dec 31, 2015. Part 1. Prepare the amortization table for this installment note using the template below. Note that I completed the first line for you and left the totals as check figures. 1....
On November 1, 2017, Norwood borrows $480,000 cash from a bank by signing a five-year installment...
On November 1, 2017, Norwood borrows $480,000 cash from a bank by signing a five-year installment note bearing 5% interest. The note requires equal payments of $110,867 each year on October 31. (Table B.1, Table B.2, Table B.3, and Table B.4) (Use appropriate factor(s) from the tables provided.) 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, 2017 (the end of...
On January 1, Year 1 Hatcher Co. borrowed $150,000 cash by signing a 10% installment note...
On January 1, Year 1 Hatcher Co. borrowed $150,000 cash by signing a 10% installment note that is to be repaid with 3 annual year-end payments of $60,316, the first of which is due on December 31, Year 1. (a) Prepare the company's journal entry to record the note's issuance. Date Account Name Debit Credit (b) Prepare the journal entries to record the first and second installment payments. Hint: You will need to calculate interest expense and reduction to note...
Problem 10-6A Installment notes LO C1 On November 1, 2017, Norwood borrows $410,000 cash from a...
Problem 10-6A Installment notes LO C1 On November 1, 2017, Norwood borrows $410,000 cash from a bank by signing a five-year installment note bearing 9% interest. The note requires equal payments of $105,407 each year on October 31. (Table B.1, Table B.2, Table B.3, and Table B.4) (Use appropriate factor(s) from the tables provided.) 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...
On November 7, 2017, Mura Company borrows $280,000 cash by signing a 90-day, 10% note payable...
On November 7, 2017, Mura Company borrows $280,000 cash by signing a 90-day, 10% note payable with a face value of $280,000. (Use 360 days a year. Do not round your intermediate calculations.) 1. Compute the accrued interest payable on December 31, 2017. 2. & 3. Prepare the journal entry to record the accrued interest expense at December 31, 2017 and payment of the note at maturity.
Entries for Installment Note Transactions On January 1, Year 1, Bryson Company obtained a $52,000, four-year,...
Entries for Installment Note Transactions On January 1, Year 1, Bryson Company obtained a $52,000, four-year, 11% installment note from Campbell Bank. The note requires annual payments of $16,761, beginning on December 31, Year 1. a. Prepare an amortization table for this installment note, similar to the one presented in Exhibit 4. Note: Round the computation of the interest expense to the nearest whole dollar. Enter all amounts as positive numbers. In Year 4, round the amount in the Decrease...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT