Amortization Schedule - Long-term NoteJanuary 1, 2020 Wang Co borrows $40,000 at 5% for 7 years. Determine the blended annual December 31, year-endpayments. Prepare an amortization schedule.N (period of time)| (Interest)PV (Present ValueFV (Future Value)PMT (Annuity)Required1 Prepare the loan amortization schedule using the effective interest method.BeginningBalanceInterestPrincipalPaymentAnnualPrincipalPage TPeriodРадеPaymentExpenseBalance1234672 Determine the amount that would be presented on the balance sheet at December 31, 2020 (at end of year 1) as:Current portion of long-term note at December 31, 20203 Prepare the journal entry to record the last loan payment.General JournalDRCR

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Amortization Schedule - Long-term Note January 1, 2020 Wang Co borrows $40,000 at 5% for 7 years. Determine the blended annual December 31, year-end payments. Prepare an amortization schedule. N (period of time) | (Interest) PV (Present Value FV (Future Value) PMT (Annuity) Required Prepare the loan amortization schedule using the effective interest method. Beginning Balance Annual Interest Principal Payment Principal Page T Period Payment Expense Balance 1 4 7 Determine the amount that would be presented on the balance sheet at December 31, 2020 (at end of year 1) as: Current portion of long-term note at December 31, 2020 Prepare the journal entry to record the last loan payment. General Journal DR CR

Amortization Schedule - Long-term Note January 1, 2020 Wang Co borrows $40,000 at 5% for 7 years. Determine the blended annual December 31, year-end payments. Prepare an amortization schedule. N (period of time) | (Interest) PV (Present Value FV (Future Value) PMT (Annuity) Required Prepare the loan amortization schedule using the effective interest method. Beginning Balance Annual Interest Principal Payment Principal Page T Period Payment Expense Balance 1 4 7 Determine the amount that would be presented on the balance sheet at December 31, 2020 (at end of year 1) as: Current portion of long-term note at December 31, 2020 Prepare the journal entry to record the last loan payment. General Journal DR CR

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 1EB: Everglades Consultants takes out a loan in the amount of $375,000 on April 1. The terms of the loan...

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Everglades Consultants takes out a loan in the amount of $375,000 on April 1. The terms of the loan include a repayment of principal in eight, equal installments, paid annually from the April 1 date. The annual interest rate on the loan is 5%, recognized on December 31. (Round answers to the nearest cent, if needed.) A. Compute the interest recognized as of December 31 in year 1. B. Compute the principal due in year 1.
Marathon Peanuts converts a $130,000 account payable into a short-term note payable, with an annual interest rate of 6%, and payable in four months. How much interest will Marathon Peanuts owe at the end of four months? A. $2,600 B. $7,800 C. $137,800 D. $132,600
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