Entries for installment note transactions On January 1 of Year 1, Bryson Company obtained a $147,750, 4-year, 7% installment note from Campbell Bank. The note requires annual payments of $43,620, beginning on December 31 of Year 1. a. Prepare a table for this installment note, similar to the one presented in Exhibit 4. Enter all amounts as positive numbers. (Note: Due to rounding, the Year 4 Interest expense is provided.) Round the computation of the interest expense to the nearest whole dollar. If an amount box does not require an entry, leave blank. Amortization of Installment Notes Interest Expense (7% of January 1 Note Carrying Amount) 10,343 ✔ 8,013 5,521 For the Year Ending Dec. 31 Year 1 Year 2 Year 3 January 1 Carrying Amount 147,750 ✔ 114,473 ✔ 78,866 ✔ Note Payment (Cash Paid) 43,620 ✔ 43,620 43,620 ✓ ✓ Decrease in Notes Payable 35,607 ✔ 38,099 ✓ December 31 Carrying Amount $ 114,473 ✔ 78,866 ✔
Entries for installment note transactions On January 1 of Year 1, Bryson Company obtained a $147,750, 4-year, 7% installment note from Campbell Bank. The note requires annual payments of $43,620, beginning on December 31 of Year 1. a. Prepare a table for this installment note, similar to the one presented in Exhibit 4. Enter all amounts as positive numbers. (Note: Due to rounding, the Year 4 Interest expense is provided.) Round the computation of the interest expense to the nearest whole dollar. If an amount box does not require an entry, leave blank. Amortization of Installment Notes Interest Expense (7% of January 1 Note Carrying Amount) 10,343 ✔ 8,013 5,521 For the Year Ending Dec. 31 Year 1 Year 2 Year 3 January 1 Carrying Amount 147,750 ✔ 114,473 ✔ 78,866 ✔ Note Payment (Cash Paid) 43,620 ✔ 43,620 43,620 ✓ ✓ Decrease in Notes Payable 35,607 ✔ 38,099 ✓ December 31 Carrying Amount $ 114,473 ✔ 78,866 ✔
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter14: Long-term Liabilities: Bonds And Notes
Section: Chapter Questions
Problem 11E
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