Cucina Corp. signed a new installment note on January 1, 2018, and deposited the proceeds of...

Cucina Corp. signed a new installment note on January 1, 2018, and deposited the proceeds of $57,000 in its bank account. The note has a 3-year term, compounds 4 percent interest annually, and requires an annual installment payment on December 31. Cucina Corp. has a December 31 year-end and adjusts its accounts only at year-end.

Required:

Use an online application, such as the loan calculator with annual payments at mycalculators.com, to generate an amortization schedule. Enter that information into an amortization schedule with the following headings: Year, Beginning Notes Payable, Interest Expense, Repaid Principal on Notes Payable, and Ending Notes Payable.
Prepare the journal entries on (a) January 1, 2018, and December 31 of (b) 2018, (c) 2019, and (d) 2020.
If Cucina Corp.’s year-end were March 31, rather than December 31, prepare the adjusting journal entry would it make for this note on March 31, 2018?

Use an online application, such as the loan calculator with annual payments at mycalculators.com, to generate an amortization schedule. Enter that information into an amortization schedule with the following headings: Year, Beginning Notes Payable, Interest Expense, Repaid Principal on Notes Payable, and Ending Notes Payable. (Do not round intermediate calculations. Round final answers to nearest whole dollar.)

Year	Beginning Notes Payable	Interest Expense	Repaid Principal on Notes Payable	Ending Notes Payable
2018	57,000
2019
2020
		0	0

Prepare the journal entries on (a) January 1, 2018, and December 31 of (b) 2018, (c) 2019, and (d) 2020. (Do not round intermediate calculations. Round final answers to nearest whole dollar. If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

1.) Record the signing of the installment note on January 1, 2018.

2.) Record the installment payment on December 31, 2018.

3.)Record the installment payment on December 31, 2019.

4.) Record the installment payment on December 31, 2020.

If Cucina Corp.’s year-end were March 31, rather than December 31, prepare the adjusting journal entry would it make for this note on March 31, 2018? (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

Record the adjusting journal entry for this note on March 31, 2018.

Solutions

Expert Solution

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

Cucina Corp. signed a new installment note on January 1, 2018, and deposited the proceeds of...

Cucina Corp. signed a new installment note on January 1, 2018, and deposited the proceeds of $62,000 in its bank account. The note has a 3-year term, compounds 5 percent interest annually, and requires an annual installment payment on December 31. Cucina Corp. has a December 31 year-end and adjusts its accounts only at year-end. Required: Use an online application, such as the loan calculator with annual payments at mycalculators.com, to generate an amortization schedule. Enter that information into an...

Cucina Corp. signed a new installment note on January 1, 2018, and deposited the proceeds of...

Cucina Corp. signed a new installment note on January 1, 2018, and deposited the proceeds of $51,000 in its bank account. The note has a 3-year term, compounds 6 percent interest annually, and requires an annual installment payment on December 31. Cucina Corp. has a December 31 year-end and adjusts its accounts only at year-end Use an online application, such as the loan calculator with annual payments at mycalculators.com, to generate an amortization schedule. Enter that information into an amortization...

Cucina Corp. signed a new installment note on January 1, 2018, and deposited the proceeds of...

Cucina Corp. signed a new installment note on January 1, 2018, and deposited the proceeds of $68,000 in its bank account. The note has a 3-year term, compounds 5 percent interest annually, and requires an annual installment payment on December 31. Cucina Corp. has a December 31 year-end and adjusts its accounts only at year-end. Required: Use an online application, such as the loan calculator with annual payments at mycalculators.com, to generate an amortization schedule. Enter that information into an...

Little Company borrowed $56,000 from Sockets on January 1, 2018, and signed a three-year, 7% installment...

Little Company borrowed $56,000 from Sockets on January 1, 2018, 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, 2018, 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, 2018, Allgood Company purchased equipment and signed a? six-year mortgage note for? $186,000...

On January? 1, 2018, Allgood Company purchased equipment and signed a? six-year mortgage note for? $186,000 at? 15%. The note will be paid in equal annual installments of? $49,148, beginning January? 1, 2019. Calculate the portion of interest expense paid on the third installment.? (Round your answer to the nearest whole? number.) A. ?$21,048 B. ?$49,148 C. ?$27,900 D. ?$164,752

1 Dec. 1 Borrow $128,250 from the local bank and signed a five-year installment note with...

1 Dec. 1 Borrow $128,250 from the local bank and signed a five-year installment note with payments of $2,600 at the end of each month beginning December 31. The annual interest rate is 8%. Current portion of the note payable at year end after December payment = $21,875 2 Dec. 1 Purchase a vehicle necessary for business operations for $7,400 cash. The vehicle has a six-year life with a residual value of $200 3 Dec. 1 Issue 15,000 shares of...

1 Dec. 1 Borrow $128,250 from the local bank and signed a five-year installment note with...

On January 1, a company borrowed cash by issuing a $300,000, 5%, installment note to be...

On January 1, a company borrowed cash by issuing a $300,000, 5%, installment note to be paid in three equal payments at the end of each year beginning December 31. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) What would be the amount of each installment? Prepare an amortization table for the installment note. Prepare the journal entry for the second installment...

Camp Elim obtains a $125,000, 6%, five-year installment note for a new camp bus on January...

Camp Elim obtains a $125,000, 6%, five-year installment note for a new camp bus on January 1, 2021. The note requires monthly installment payments of $2,416.60 What journal entry will be recorded for the first month’s payment on January 31, 2021? Multiple Choice Debit interest expense $1,500; debit notes payable $916.60; credit cash $2,416.60 Debit notes payable $625; debit interest expense $1,791.60; credit cash $2,416.60 Debit interest expense $625; debit notes payable $1,791.60; credit cash $2,416.60 Debit notes payable $1,500;...

A company purchased equipment on July 1, 2018 and signed a 8 year mortgage note for...

A company purchased equipment on July 1, 2018 and signed a 8 year mortgage note for $150,000 at 5% interest. The note will be paid in equal installments beginning July 1, 2019. On July 1, 2019, the journal entry to record the first installment payment will include a credit to cash of $$150,000 debit to interest expense of $7,500 credit to interest expense of $7,500 debit to interest expense of $3,750

Subjects