Entries for Installment Note Transactions On January 1, Year 1, Bryson Company obtained a $33,000, four-year, 8% installment note from Campbell Bank. The note requires annual payments of $9,963, beginning on December 31, Year 1. a. Prepare an amortization table for this installment note, similar to the one presented in Exhibit 4 Note: Round the computation of the interest expense to the nearest whole dollar. Enter all amounts as positive numbers. In Year 4, round the amount in the Decrease in Notes Payable column either up or down to ensure that the Carrying Amount zeroes out. Amortization of Installment Notes Year Ending December 31 Year 1 Year 2 Year 3 Interest Expense (800 of January 1 Note Carrying Amount) December 31 Carrying Amount Decrease in January 1 Carrying Amount Note Payment (Cash Paid) Notes Payable 9,963 9,963 9,963 9,963 39,852 2,640 2,054 1,421 738 6,853 33,000 25,677 17,768 9,226 7,323 7,909 8,542 9,925 33,699 25,677 17,768 9,226 Year 4 0

Entries for Installment Note Transactions On January 1, Year 1, Bryson Company obtained a $33,000, four-year, 8% installment note from Campbell Bank. The note requires annual payments of $9,963, beginning on December 31, Year 1. a. Prepare an amortization table for this installment note, similar to the one presented in Exhibit 4 Note: Round the computation of the interest expense to the nearest whole dollar. Enter all amounts as positive numbers. In Year 4, round the amount in the Decrease in Notes Payable column either up or down to ensure that the Carrying Amount zeroes out. Amortization of Installment Notes Year Ending December 31 Year 1 Year 2 Year 3 Interest Expense (800 of January 1 Note Carrying Amount) December 31 Carrying Amount Decrease in January 1 Carrying Amount Note Payment (Cash Paid) Notes Payable 9,963 9,963 9,963 9,963 39,852 2,640 2,054 1,421 738 6,853 33,000 25,677 17,768 9,226 7,323 7,909 8,542 9,925 33,699 25,677 17,768 9,226 Year 4 0

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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