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Ex 7- Long-Term Note Payable a) What if the Einstein Corporation decided to raise capital (Cash) by issuing a Note instead of selling Stocks or Bonds. Journalize the entries for the following 1) Issued the $500,000 3 year 8% Note to the First National Bank on January 1, 202X Account Name Debit Credit 2) Entry made on each December 31 to accrue interest expense for that year. Account Name Debit Credit 3) Entry made to pay off the Note at the end of the 3 years, after the entry for the accrual of interest for the thi vear has been made Account Name Debit Credit :8-Installment

Ex 7- Long-Term Note Payable a) What if the Einstein Corporation decided to raise capital (Cash) by issuing a Note instead of selling Stocks or Bonds. Journalize the entries for the following 1) Issued the $500,000 3 year 8% Note to the First National Bank on January 1, 202X Account Name Debit Credit 2) Entry made on each December 31 to accrue interest expense for that year. Account Name Debit Credit 3) Entry made to pay off the Note at the end of the 3 years, after the entry for the accrual of interest for the thi vear has been made Account Name Debit Credit :8-Installment

Financial Accounting: The Impact on Decision Makers
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter9: Current Liabilities, Contingencies, And The Time Value Of Money
Section: Chapter Questions
Problem 9.6P
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Ex 7- Long-Term Note Payable a) What if the Einstein Corporation decided to raise capital (Cash) by issuing a Note instead of selling Stocks or Bonds. Journalize the entries for the following: 1) Issued the $500,000 3 year 8% Note to the First National Bank on January 1, 202X Account Name Debit Credit 2) Entry made on each December 31 to accrue interest expense for that year. Account Name Debit Credit 3) Entry made to pay off the Note at the end of the 3 years, after the entry for the accrual of interest for the third vear has been made Account Name Debit Credit Ex 8 - Installment Note Payable a) What if the Einstein Corporation decided to sign a $500,000, 12%, 20 year Mortgage Note Payable to First National Bank on January 1, 202X for the purchase of a new building. The Mortgage Note stipulates that $33,231 be paid each 6 months for the next 20 years. Journalize the entries for the following: 1) Issued the $500,000 20 year 12% Note to the First National Bank on January 1, Year 1. Account Name Debit Credit 2) Entry made on June 30, Year 1 for the 1st payment of $33,231. (Hint: What was the amount of the principal owed for the past 6 months.) Account Name Debit Credit 3) Entry made on December 31, Year 1 for the 2nd payment of $33,231. (Hint: What was the amount of the principal owed for the past 6 months.) Account Name Debit Credit 4) Entry made on June 30, Year 2 for the 3rd payment of $33,231. (Hint: What was the amount of the principal owed for the past 6 months.) Account Name Debit Credit
Transcribed Image Text:Ex 7- Long-Term Note Payable a) What if the Einstein Corporation decided to raise capital (Cash) by issuing a Note instead of selling Stocks or Bonds. Journalize the entries for the following: 1) Issued the $500,000 3 year 8% Note to the First National Bank on January 1, 202X Account Name Debit Credit 2) Entry made on each December 31 to accrue interest expense for that year. Account Name Debit Credit 3) Entry made to pay off the Note at the end of the 3 years, after the entry for the accrual of interest for the third vear has been made Account Name Debit Credit Ex 8 - Installment Note Payable a) What if the Einstein Corporation decided to sign a $500,000, 12%, 20 year Mortgage Note Payable to First National Bank on January 1, 202X for the purchase of a new building. The Mortgage Note stipulates that $33,231 be paid each 6 months for the next 20 years. Journalize the entries for the following: 1) Issued the $500,000 20 year 12% Note to the First National Bank on January 1, Year 1. Account Name Debit Credit 2) Entry made on June 30, Year 1 for the 1st payment of $33,231. (Hint: What was the amount of the principal owed for the past 6 months.) Account Name Debit Credit 3) Entry made on December 31, Year 1 for the 2nd payment of $33,231. (Hint: What was the amount of the principal owed for the past 6 months.) Account Name Debit Credit 4) Entry made on June 30, Year 2 for the 3rd payment of $33,231. (Hint: What was the amount of the principal owed for the past 6 months.) Account Name Debit Credit
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