Question
In: Accounting
On 31 October 2017 Jansen company signed a 2 year instalment note in the amount of...
On 31 October 2017 Jansen company signed a 2 year instalment
note in the amount of 50.000 in conjunction with the purchase of
the equipment. This note is payable in equal monthly instalments of
2.354 which include interest computed at annual rate of 12%. The
first monthly payment is made on November 30,2017. This note is
amortising over 24 months.
Complete amortisation table for the first 4 payments by
entering the correct dollar amounts
Solutions
Expert Solution
| Month end | Beginning balance | Cash paid at the end of the month | Interest at 1% | Payment against principal | Ending balance |
| NOV | $ 50,000 | $ 2,354 | $ 500 | $ 1,854 | $ 48,146 |
| DEC | $ 48,146 | $ 2,354 | $ 481 | $ 1,873 | $ 46,273 |
| JAN | $ 46,273 | $ 2,354 | $ 463 | $ 1,891 | $ 44,382 |
| FEB | $ 44,382 | $ 2,354 | $ 444 | $ 1,910 | $ 42,472 |
ekkarill92 answered 2 months agoRelated Solutions
On October 31, 2015, a company signed a note for $50,000 with a bank. The terms...
On October 31, 2015, a company signed a note for $50,000 with a
bank. The terms were 10% for 9 months. On December 31, 2015,
adjusting entries are recorded. What is the correct adjusting entry
for this event
Group of answer choices
Debit Interest Expense and credit Interest Payable for
$833.33.
. Debit Interest Expense and credit Notes Payable for
$833.33.
Debit Interest Payable and credit Interest Expense for
$3,750.
Debit Interest Expense and credit Interest Payable for
$3,750.
On December 31, 2017, Flint Company signed a $ 1,038,100 note to Buffalo Bank. The market...
On December 31, 2017, Flint Company signed a $ 1,038,100 note to
Buffalo Bank. The market interest rate at that time was 11%. The
stated interest rate on the note was 9%, payable
annually. The note matures in 5 years. Unfortunately, because of
lower sales, Flint’s financial situation worsened. On December 31,
2019, Buffalo Bank determined that it was probable that the company
would pay back only $ 622,860 of the principal at maturity.
However, it was considered likely that interest...
On October 30, 2016, Sanchez Company acquired a piece of machinery and signed a 12-month note...
On October 30, 2016, Sanchez Company acquired a piece of
machinery and signed a 12-month note for $24,000. The face value of
the note includes the price of the machinery and interest. The note
is to be paid in four $6,000 quarterly installments. The value of
the machinery is the present value of the four quarterly payments
discounted at an annual interest rate of 16%.
Required:
1.
Prepare all the journal entries required to record the
preceding information including the...
On October 30, 2016, Sanchez Company acquired a piece of machinery and signed a 12-month note...
On October 30, 2016, Sanchez Company acquired a piece of
machinery and signed a 12-month note for $24,000. The face value of
the note includes the price of the machinery and interest. The note
is to be paid in four $6,000 quarterly installments. The value of
the machinery is the present value of the four quarterly payments
discounted at an annual interest rate of 16%. Required: 1. Prepare
all the journal entries required to record the preceding
information including the...
On January 1, 2017, Howard Corporation signed a $500,000, 6%, 5-year mortgage note that is payable...
On January 1, 2017, Howard Corporation signed a $500,000, 6%,
5-year mortgage note that is payable in annual installments of
$118,698 every January 1. On December 31, 2017, the unpaid
principal balance should be reported as
A : a $118,698 current liability and a $381,302 long-term
liability.
B : a $500,000 current liability.
C : a $88,698 current liability and a $411,301 long-term
liability.
D : a $500,000 long-term liability.
On December 31, 2020, Pina Company signed a $1,056,300 note to Grouper Bank. The market interest...
On December 31, 2020, Pina Company signed a $1,056,300 note to
Grouper Bank. The market interest rate at that time was 11%. The
stated interest rate on the note was 9%, payable annually. The note
matures in 5 years. Unfortunately, because of lower sales, Pina’s
financial situation worsened. On December 31, 2022, Grouper Bank
determined that it was probable that the company would pay back
only $633,780 of the principal at maturity. However, it was
considered likely that interest would...
On December 31, 2020, Teal Company signed a $1,022,000 note to Flint Bank. The market interest...
On December 31, 2020, Teal Company signed a $1,022,000 note to
Flint Bank. The market interest rate at that time was 11%. The
stated interest rate on the note was 9%, payable annually. The note
matures in 5 years. Unfortunately, because of lower sales, Teal’s
financial situation worsened. On December 31, 2022, Flint Bank
determined that it was probable that the company would pay back
only $613,200 of the principal at maturity. However, it was
considered likely that interest would...
On December 31, 2020, Teal Company signed a $1,137,500 note to Flint Bank. The market interest...
On December 31, 2020, Teal Company signed a $1,137,500 note to
Flint Bank. The market interest rate at that time was 12%. The
stated interest rate on the note was 10%, payable annually. The
note matures in 5 years. Unfortunately, because of lower sales,
Teal’s financial situation worsened. On December 31, 2022, Flint
Bank determined that it was probable that the company would pay
back only $682,500 of the principal at maturity. However, it was
considered likely that interest would...
A one-year, $24,600, 12% note is signed on April 1. If the note is repaid on...
A one-year, $24,600, 12% note is signed on April 1. If the note
is repaid on October 1 of the same year, how much interest expense
is incurred? (Do not round intermediate
calculations.)
$2,952
$1,476
$1,722
$1,230
The following 12%, $1,000 notes were issued on December 1. Which
of the following is the correct method of calculation for the
interest accrued as of December 31 of the same year on each of the
notes described?
Interest on a 4-month note...
3.On October 1, 2018, Pastina signed a $57,000 note that requires interest to paid annually on...
3.On October 1, 2018, Pastina signed a $57,000 note that
requires interest to paid annually on September 30 at 12% and will
have principal due in 10 years.
Note: Enter debits before credits.
4.On March 1, 2018, the company lent $27,000. The note required
principal and interest at 8% be paid on February 28, 2019.
Transaction
General Journal
Debit
Credit
3
Interest expense
?
Interest payable
?
4
interest receivable
?
interest revenue
?
5.On April 1, 2018, the company...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- A pension fund manager is considering three mutual funds. The first is a stock fund, the...
- Compute the cost of not taking the following cash discounts. (Use a 360-day year. Do not...
- During his project presentation, Bob falls sick and performs poorly. However, his colleague, Dan, concludes that...
- A sample human input file that contains test values that a human would enter on the...
- A solution is prepared by dissolving 15 ml of methanol in 150.0 ml water at 25...
- Consider a newlywed who is planning a wedding anniversary gift of a trip to Canada for...
- We are evaluating a project that costs $868,000, has a life of eight years, and has...
ADVERTISEMENT