On January 1, 2021, Texas Inc. obtained a $50,000, four-year, 7% installment note from Arkansas Bank....

On January 1, 2021, 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, 2021. The portion of the Notes Payable that would be included in the current liability section of Texas’s balance sheet at December 31, 2021, after the first payment is made would be:

A) $35,239

B) $38,739

C) $12,049

D) $14,761

Expert Solution

Total Loan amount	$50,000

Date	Principal	Interest	Annual payment	Closing amount
31-Dec-21	50,000	3,500	14,761	38,739
31-Dec-22	38,739	2,712	14,761	26,690
31-Dec-23	26,690	1,868	14,761	13,797
31-Dec-24	13,797	966	14,761	-

Total Amount outstanding as on 31 Dec 2021	38,739
Principal amount paid in Year ended 31 Dec 2022	= annual installment amount - (Interest amount paid)
	= 14761-2712
	= $12049
Texas’s balance sheet at December 31, 2021
Current portion	= $12049

Non Current Portion	= 38739-12049
	= $26690

So Answer is (C ) $12049

ekkarill92 answered 1 year ago

On January 1, Year 1, Bryson Company obtained a $71,000, four-year, 11% installment note from Campbell...

On January 1, Year 1, Bryson Company obtained a $71,000, four-year, 11% installment note from Campbell Bank. The note requires annual payments of $22,885, 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 in Notes Payable column either...

On January 1, Year 1, Bryson Company obtained a $39,000, four-year, 10% installment note from Campbell...

On January 1, Year 1, Bryson Company obtained a $39,000, four-year, 10% installment note from Campbell Bank. The note requires annual payments of $12,303, 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 in Notes Payable column either...

On January 1, Gemstone Company obtained a $200,000, 10-year 9% installment note from Guarantee Bank. The...

On January 1, Gemstone Company obtained a $200,000, 10-year 9% installment note from Guarantee Bank. The note requires annual payments of $31,164, with the first payment occuring on the last day of the fiscal year. The first payment consists of interest of $18,000 and principal repayument of $13,164. The journal entry to record the payment of the first annual amount due on the note would include a Double-click on the box below to edit your answer choices. A.debit to cash...

Entries for Installment Note Transactions On January 1, Year 1, Bryson Company obtained a $19,000, four-year,...

Entries for Installment Note Transactions On January 1, Year 1, Bryson Company obtained a $19,000, four-year, 11% installment note from Campbell Bank. The note requires annual payments of $6,124, 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...

Entries for Installment Note Transactions On January 1, Year 1, Bryson Company obtained a $55,000, four-year,...

Entries for Installment Note Transactions On January 1, Year 1, Bryson Company obtained a $55,000, four-year, 11% installment note from Campbell Bank. The note requires annual payments of $17,728, 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...

Entries for Installment Note Transactions On January 1, Year 1, Bryson Company obtained a $33,000, four-year,...

Entries for Installment Note Transactions On January 1, Year 1, Bryson Company obtained a $33,000, four-year, 8% installment note from Campbell Bank. The note requires annual payments of $9,963, 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...

Entries for Installment Note Transactions On January 1, Year 1, Bryson Company obtained a $26,000, four-year,...

Entries for Installment Note Transactions On January 1, Year 1, Bryson Company obtained a $26,000, four-year, 12% installment note from Campbell Bank. The note requires annual payments of $8,560, 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...

On January 1, 2017, Eagle borrows $25,000 cash by signing a four-year, 7% installment note. The...

On January 1, 2017, Eagle borrows $25,000 cash by signing a four-year, 7% installment note. The note requires four equal payments of $7,381, consisting of accrued interest and principal on December 31 of each year from 2017 through 2020. (Round your intermediate calculations and final answers to the nearest dollar amount.) 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. Eagle borrows $25,000...

Little Company borrowed $51,000 from Sockets on January 1, 2021, and signed a three-year, 7% installment...

Little Company borrowed $51,000 from Sockets on January 1, 2021, and signed a three-year, 7% installment note to be paid in three equal payments at the end of each year. The present value of an ordinary annuity of $1 for 3 periods at 7% is 2.62432. Required: 1. Prepare the journal entry on January 1, 2021, for Sockets’ lending the funds. 2. Calculate the amount of one installment payment. 3. Prepare an amortization schedule for the three-year term of the...

On January 1, 2017, Eagle borrows $16,000 cash by signing a four-year, 5% installment note. The...

On January 1, 2017, Eagle borrows $16,000 cash by signing a four-year, 5% installment note. The note requires four equal payments of $4,512, consisting of accrued interest and principal on December 31 of each year from 2017 through 2020. (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...

Question