On January 1, Year 1, Bryson Company obtained a $36,000, four-year, 8% installment note from Campbell Bank. The note requires annual payments of $10,869, beginning on December 31, Year 1. Question Content Area a. Prepare an amortization table for this installment note, similar to the one presented in Exhibit 4. Note: Enter all amounts to the nearest whole dollar. Round Year 4 Interest Expense (up or down) to ensure the carrying amount is zero at the end of the note term. Amortization of Installment Notes Year Ending December 31 January 1 Carrying Amount Note Payment (Cash Paid) Interest Expense (7% of January 1 Note Carrying Amount) Decrease in Notes Payable December 31 Carrying Amount Year 1 $fill in the blank b118f2fd6fc7fe2_3 $fill in the blank b118f2fd6fc7fe2_4 $fill in the blank b118f2fd6fc7fe2_5 Year 2 fill in the blank b118f2fd6fc7fe2_8 fill in the blank b118f2fd6fc7fe2_9 fill in the blank b118f2fd6fc7fe2_10 Year 3 fill in the blank b118f2fd6fc7fe2_13 fill in the blank b118f2fd6fc7fe2_14 fill in the blank b118f2fd6fc7fe2_15 Year 4 fill in the blank b118f2fd6fc7fe2_18 fill in the blank b118f2fd6fc7fe2_19 Question Content Area b. Journalize the entries for the issuance of the note and the four annual note payments. Note: For a compound transaction, if an amount box does not require an entry, leave it blank. For the Year 4 entry (due to rounding), adjust Notes Payable up or down to ensure that debits equal credits. Year 1 Jan. 1 - Select - - Select - Year 1 Dec. 31 - Select - - Select - - Select - - Select - - Select - - Select - Year 2 Dec. 31 - Select - - Select - - Select - - Select - - Select - - Select - Year 3 Dec. 31 - Select - - Select - - Select - - Select - - Select - - Select - Year 4 Dec. 31 - Select - - Select - - Select - - Select - - Select - - Select - Question Content Area c. How will the annual note payment be reported in the Year 1 income statement? of $fill in the blank e20a86099ff8074_2 would be reported on the income statement.

On January 1, Year 1, Bryson Company obtained a $36,000, four-year, 8% installment note from Campbell Bank. The note requires annual payments of $10,869, beginning on December 31, Year 1. Question Content Area a. Prepare an amortization table for this installment note, similar to the one presented in Exhibit 4. Note: Enter all amounts to the nearest whole dollar. Round Year 4 Interest Expense (up or down) to ensure the carrying amount is zero at the end of the note term. Amortization of Installment Notes Year Ending December 31 January 1 Carrying Amount Note Payment (Cash Paid) Interest Expense (7% of January 1 Note Carrying Amount) Decrease in Notes Payable December 31 Carrying Amount Year 1 $fill in the blank b118f2fd6fc7fe2_3 $fill in the blank b118f2fd6fc7fe2_4 $fill in the blank b118f2fd6fc7fe2_5 Year 2 fill in the blank b118f2fd6fc7fe2_8 fill in the blank b118f2fd6fc7fe2_9 fill in the blank b118f2fd6fc7fe2_10 Year 3 fill in the blank b118f2fd6fc7fe2_13 fill in the blank b118f2fd6fc7fe2_14 fill in the blank b118f2fd6fc7fe2_15 Year 4 fill in the blank b118f2fd6fc7fe2_18 fill in the blank b118f2fd6fc7fe2_19 Question Content Area b. Journalize the entries for the issuance of the note and the four annual note payments. Note: For a compound transaction, if an amount box does not require an entry, leave it blank. For the Year 4 entry (due to rounding), adjust Notes Payable up or down to ensure that debits equal credits. Year 1 Jan. 1 - Select - - Select - Year 1 Dec. 31 - Select - - Select - - Select - - Select - - Select - - Select - Year 2 Dec. 31 - Select - - Select - - Select - - Select - - Select - - Select - Year 3 Dec. 31 - Select - - Select - - Select - - Select - - Select - - Select - Year 4 Dec. 31 - Select - - Select - - Select - - Select - - Select - - Select - Question Content Area c. How will the annual note payment be reported in the Year 1 income statement? of $fill in the blank e20a86099ff8074_2 would be reported on the income statement.

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

See similar textbooks

Question Content Area

a. Prepare an amortization table for this installment note, similar to the one presented in Exhibit 4.

Note: Enter all amounts to the nearest whole dollar. Round Year 4 Interest Expense (up or down) to ensure the carrying amount is zero at the end of the note term.

Amortization of Installment Notes
Year Ending December 31	January 1 Carrying Amount	Note Payment (Cash Paid)	Interest Expense (7% of January 1 Note Carrying Amount)	Decrease in Notes Payable	December 31 Carrying Amount
Year 1						$fill in the blank b118f2fd6fc7fe2_3	$fill in the blank b118f2fd6fc7fe2_4	$fill in the blank b118f2fd6fc7fe2_5
Year 2						fill in the blank b118f2fd6fc7fe2_8	fill in the blank b118f2fd6fc7fe2_9	fill in the blank b118f2fd6fc7fe2_10
Year 3						fill in the blank b118f2fd6fc7fe2_13	fill in the blank b118f2fd6fc7fe2_14	fill in the blank b118f2fd6fc7fe2_15
Year 4						fill in the blank b118f2fd6fc7fe2_18	fill in the blank b118f2fd6fc7fe2_19

Question Content Area

b. Journalize the entries for the issuance of the note and the four annual note payments.

Note: For a compound transaction, if an amount box does not require an entry, leave it blank. For the Year 4 entry (due to rounding), adjust Notes Payable up or down to ensure that debits equal credits.

Year 1 Jan. 1	- Select -
		- Select -
Year 1 Dec. 31	- Select -	- Select -
	- Select -	- Select -
	- Select -	- Select -
Year 2 Dec. 31	- Select -	- Select -
	- Select -	- Select -
	- Select -	- Select -
Year 3 Dec. 31	- Select -	- Select -
	- Select -	- Select -
	- Select -	- Select -
Year 4 Dec. 31	- Select -	- Select -
	- Select -	- Select -
	- Select -	- Select -

Question Content Area

c. How will the annual note payment be reported in the Year 1 income statement?

of $fill in the blank e20a86099ff8074_2 would be reported on the income statement.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.