October 1, 2015, GFS borrows $150,000 cash from a bank by signing a three-year installment note bearing 10% interest. The note requires equal total payments each year on September 30. Required 1. Compute the total amount of each installment payment. 2. Complete an amortization table for this installment note. 3. Prepare the journal entries to record (a) accrued interest as of December 31, 2015 (the end of its annual reporting period) and (b) the first annual payment on the note.

October 1, 2015, GFS borrows $150,000 cash from a bank by signing a three-year installment note bearing 10% interest. The note requires equal total payments each year on September 30. Required 1. Compute the total amount of each installment payment. 2. Complete an amortization table for this installment note. 3. Prepare the journal entries to record (a) accrued interest as of December 31, 2015 (the end of its annual reporting period) and (b) the first annual payment on the note.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 1EA: Halep Inc. borrowed $30,000 from Davis Bank and signed a 4-year note payable stating the interest...

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