C14Q4c

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University of Texas, Permian Basin *

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3302

Subject

Accounting

Date

Apr 3, 2024

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pdf

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3

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3/18/24, 11:54 AM Assignment Print View https://ezto.mheducation.com/api/caa/activity/C15Print?jwt=eyJhbGciOiJSUzI1NiJ9.eyJlbnZpcm9ubWVudCI6InByb2QiLCJpc3MiOiJlenQiLCJwcmlud… 1/3 Score: 16.12/100 Points 16.12 %
3/18/24, 11:54 AM Assignment Print View https://ezto.mheducation.com/api/caa/activity/C15Print?jwt=eyJhbGciOiJSUzI1NiJ9.eyJlbnZpcm9ubWVudCI6InByb2QiLCJpc3MiOiJlenQiLCJwcmlud… 2/3 4. Award: 0 out of 5.26 points Brief Exercise 14-11 (Algo) Installment note [LO14-3] On January 1, a company borrowed cash by issuing a $370,000, 5%, installment note to be paid in three equal payments at the end of each year beginning December 31. Note: Use tables, Excel, or a financial calculator. ( FV of $1 , PV of $1 , FVA of $1 , PVA of $1 , FVAD of $1 and PVAD of $1 ) What would be the amount of each installment? Prepare an amortization table for the installment note. Prepare the journal entry for the second installment payment. Amortization General Journal Complete this question by entering your answers in the tabs below. Prepare the journal entry for the second installment payment. Note: Round your intermediate and final answers to the nearest whole dollar. If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Annual Payment Amortization General Journal No Event General Journal Debit Credit 1 1 References General Journal Difficulty: 1 Easy Brief Exercise 14-11 (Algo) Installment note [LO14-3] Learning Objective: 14-03 Characterize the accounting treatment of notes, including installment notes, issued for cash or for noncash consideration. Brief Exercise 14-11 (Algo) Installment note [LO14-3] On January 1, a company borrowed cash by issuing a $370,000, 5%, installment note to be paid in three equal payments at the end of each year beginning December 31. Note: Use tables, Excel, or a financial calculator. ( FV of $1 , PV of $1 , FVA of $1 , PVA of $1 , FVAD of $1 and PVAD of $1 ) What would be the amount of each installment? Prepare an amortization table for the installment note. Prepare the journal entry for the second installment payment.
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