HANDOUT PROBLEM for NON- CURRENT LIABILITIESI.Prepare all journal entries for the following chronological transactions which took placein 2021.Borrowed $400,000 at the bank on September 1, 2021, and signed a six-year, 6%a.note at the bank. This note requires payments of interest annually on August 31.The entire principal is due at maturity.b.Purchased a $94,000 piece of equipment on October 1, 2020, and signed a threeyear 8% note with the equipment dealer. This purchase requires a $4,000 downpayment and monthly payments of PRINCIPAL AND INTEREST at the end ofeach month for the following three years (36 months) with interest compoundedmonthly. Record the entries on October 1, October 31, November 30, andDecember 31.с.On December 31, 2021, accrued interest on the note in part "a."II.Prepare an amortization table for the 36 months of the note in part "b." The table shouldhave separate columns for each month (October 2021, November 2021, December 2021,January 2022, etc.), the beginning balance each month, the amount of the payment eachmonth, the amount of interest each month, the amount of principal each month, and theending balance each month. It would probably be a good idea to use a spreadsheet forthis table. If you still have computer problem #3 from the fall, you can probably modifypart of that assignment for this table. Please round all amounts in this table to the nearestPENNY.III.Prepare a list of the current liabilities AND THE AMOUNTS from the above transactionswhich should be reported on the balance sheet on December 31, 2021.IV.Prepare a list of the NON-current liabilities AND THE AMOUNTS from the abovetransactions which should be reported on the balance sheet on December 31, 2021.

I. Prepare all journal entries for the following chronological transactions which took place in 2021. Borrowed $400,000 at the bank on September 1, 2021, and signed a six-year, 6% a. note at the bank. This note requires payments of interest annually on August 31. The entire principal is due at maturity. b. Purchased a $94,000 piece of equipment on October 1, 2020, and signed a three year 8% note with the equipment dealer. This purchase requires a $4,000 down payment and monthly payments of PRINCIPAL AND INTEREST at the end of each month for the following three years (36 months) with interest compounded monthly. Record the entries on October 1, October 31, November 30, and December 31. On December 31, 2021, accrued interest on the note in part "a."

I. Prepare all journal entries for the following chronological transactions which took place in 2021. Borrowed $400,000 at the bank on September 1, 2021, and signed a six-year, 6% a. note at the bank. This note requires payments of interest annually on August 31. The entire principal is due at maturity. b. Purchased a $94,000 piece of equipment on October 1, 2020, and signed a three year 8% note with the equipment dealer. This purchase requires a $4,000 down payment and monthly payments of PRINCIPAL AND INTEREST at the end of each month for the following three years (36 months) with interest compounded monthly. Record the entries on October 1, October 31, November 30, and December 31. On December 31, 2021, accrued interest on the note in part "a."

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter9: Long-term Liabilities

Section: Chapter Questions

Problem 92PSA

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