5) Assume an installment note payable with a $240,000 face value, a 6% contractual interest rate,...

5) Assume an installment note payable with a $240,000 face value, a 6% contractual interest rate, and requiring monthly fixed principal payments of $2000. Create an installment payment schedule with headings for Interest Period, Cash Payment, Interest Expense, Reduction of Principal, and Principal Balance and complete the first four rows. Try to use a spreadsheet for this exercise.

Solutions

Expert Solution

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

A company borrows $10,000 and issues a 5-year, 6% installment note with interest payable annually. The...

A company borrows $10,000 and issues a 5-year, 6% installment note with interest payable annually. The factor for the present value of an annuity at 6% for 5 years is 4.2124. The factor for the present value of a single sum at 6% for 5 years is 0.7473. The present value of the interest payments is $2,527.44.

Jernigan Co. receives €240,000 when it issues a €240,000, 6%, mortgage note payable to finance the...

Jernigan Co. receives €240,000 when it issues a €240,000, 6%, mortgage note payable to finance the construction of a building at December 31, 2020. The terms provide for annual instalment payments of €33,264 on December 31. instructions Prepare the journal entry to receive the funds on 31 December 2020. Jernigan has an annual accounting period ending on 30 April. Prepare the AJE required on 30 April 2021. Prepare the journal entry for the first instalment payment due on 31 December...

On December 1, Victoria Company signed a 90-day, 6% note payable, with a face value of...

On December 1, Victoria Company signed a 90-day, 6% note payable, with a face value of $15,000. Assuming the company does not prepare reversing entries, what is the journal entry to record the repayment of the note on March 1? Multiple Choice Debit Notes Payable, $15,000; Debit Interest Expense, $150; Debit Interest Payable, $75; Credit Cash, $15,225. Debit Notes Payable, $15,000; Credit Cash, $15,000. Debit Notes Payable, $15,225; Credit Cash, $15,225. Debit Notes Payable, $15,000; Debit Interest Expense, $225; Credit...

Date of Note Face Amount Interest Rate Term of Note a. January 5 * $94,000 8%...

Date of Note Face Amount Interest Rate Term of Note a. January 5 * $94,000 8% 120 days b. February 15 * 24,000 7 30 days c. May 19 64,000 8 60 days d. August 20 34,200 4 75 days e. October 19 49,000 5 75 days * Assume a leap year in which February has 29 days. Assume 360 days in a year when computing the interest. Round your answers to the nearest dollar. Note Due Date Interest a....

1. July 1, 2019, Leeward Corporation issued $2,000,000 face value bonds with a contractual interest rate...

1. July 1, 2019, Leeward Corporation issued $2,000,000 face value bonds with a contractual interest rate of 6% and 20-year term. Prepare the following journal entries: Issuance of the bonds at 104 Issuance of the bonds at 100 Issuance of the bonds at 95 Date Account Debit Credit July 1, 2019 Cash 2,080,000 Bonds Payable 2,000,000 Premium on Bonds Payable 80,000 July 1, 2019 Cash 2,000,000 Bonds Payable 2,000,000 July 1, 2019 Cash 1,900,000 Discount on Bonds Payable 100,000 Bonds...

Assume a 2-year Euro-note, with a $100,000 face value, a coupon rate of 10%, and a...

Assume a 2-year Euro-note, with a $100,000 face value, a coupon rate of 10%, and a convexity of 4.53. If today’s YTM is11.5% and term structure is flat. Coupon frequency and compounding frequency are assumed to be annual. Please show all steps. a.What is the Macaulay duration of this bond? b.What is the exact price change in dollars if interest rates increase by 10 basis points (a uniform shift)? c.Use the duration model to calculate the approximate price change in...

How does an installment note differ from a bond payable?

The entry to record an installment payment on a long-term note payable is Mortgage Payable Cash...

The entry to record an installment payment on a long-term note payable is Mortgage Payable Cash Interest Expense Cash Mortgage Payable Interest Expense Cash Bonds Payable Cash

What is the present value of a lump sum, $240,000 in 6 years if the interest...

What is the present value of a lump sum, $240,000 in 6 years if the interest rate (discount rate) is 11.4 percent annually? (Round your answer to 2 decimal places. (e.g., 123,345.16)) Your answer:

On January 01, 2017, ASU Corporation issued $100,000 face-value bonds, with 6% interest payable at the...

On January 01, 2017, ASU Corporation issued $100,000 face-value bonds, with 6% interest payable at the end of year, that are due in 3 years. The current market interest rate for the bonds of the same rating is 8%. (1) Using the tables given, compute the selling price of the bonds as of January 01, 2017. (2) Complete the following amortization schedule using effective-interest method. (3) Prepare journal entries on each of the following dates. a) 01/01/2017 b) 12/31/2017 c)...

Subjects