Question

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 record the loan on January 1, 2017, and the four payments from December 31, 2017 through December 31, 2020
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1
Debit Credit
January 1, 2017 Cash 25000
     Notes payable 25000
December 31, 2017 Interest expense 1750 =25000*7%
Notes payable 5631
     Cash 7381
December 31, 2018 Interest expense 1356 =(25000-5631)*7%
Notes payable 6025
     Cash 7381
December 31, 2019 Interest expense 934 =(25000-5631-6025)*7%
Notes payable 6447
     Cash 7381
December 31, 2020 Interest expense 484 =(25000-5631-6025-6447)*7%
Notes payable 6897
     Cash 7381
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
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...
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...
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...
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 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...
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....
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.
Chapter 10 Question 2: On November 1, 2017, Norwood borrows $410,000 cash from a bank by...
Chapter 10 Question 2: 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 December 31,...
On January 1, 2017, Texas Inc. obtained a $50,000, four -year, 7% installment note from Arkansas...
On January 1, 2017, Texas Inc. obtained a $50,000, four -year, 7% installment note from Arkansas Bank. The note requires four annual payments of $14,761, beginning on December 31, 201 7. The portion of the Notes Payable that would be included in the current liability section of Texas’s balance sheet at December 31, 2017 , after the first payment is made would be :
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT
Active Questions
  • How can you use Bayes’ theorem in light of new information? In Bayes’ theorem, how does...
    asked 3 minutes ago
  • Which of the following is not one of the four states of a working file? Unchanged,...
    asked 6 minutes ago
  • Assume we have CPU instructions that look like this: load register, address save register, address Where...
    asked 19 minutes ago
  • What is the difference between the following two declarations? char array[] = “Hello World”; char *array...
    asked 35 minutes ago
  • Discuss knowledge and understanding gleaned from The Least Dangerous Assumption and Strategies for Presuming Competence. How...
    asked 35 minutes ago
  • Exercise 13-20 (LO13-3) The owner of Maumee Ford-Volvo wants to study the relationship between the age...
    asked 37 minutes ago
  • Scenario The Department of Administrative Services (DAS) provides a number of services to other departments in...
    asked 45 minutes ago
  • Linear Regressions The number of newly reported crime cases in a county in New York State...
    asked 50 minutes ago
  • Specialty courts have been developed for various categories of crimes and offenders (e.g., mental health, substance...
    asked 54 minutes ago
  • An air-track cart with mass m=0.40kg and speed v0=1.2m/s approaches two other carts that are at...
    asked 54 minutes ago
  • Write a program in C# that reverses a collection and removes elements that are divisible by...
    asked 57 minutes ago
  • A gas pipeline with the thickness of 4mm is to be joint together by using welding...
    asked 1 hour ago