On October 1, 2019, Gordon borrows $150,000 cash from a bank by signing a three-year installment note bearing 10% interest. The note requires equal payments of $60,316 each year on September 30. Required 1. Complete an amortization table for this installment note similar2. Prepare the journal entries to record (a) accrued interest as of December 31, 2019 (the end of its annual reporting period), and (b) the first annual payment on the note.
On October 1, 2019, Gordon borrows $150,000 cash from a bank by signing a three-year installment note bearing 10% interest. The note requires equal payments of $60,316 each year on September 30. Required 1. Complete an amortization table for this installment note similar2. Prepare the journal entries to record (a) accrued interest as of December 31, 2019 (the end of its annual reporting period), and (b) the first annual payment on the note.
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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Question
On October 1, 2019, Gordon borrows $150,000 cash from a bank by signing a three-year installment note
bearing 10% interest. The note requires equal payments of $60,316 each year on September 30.
Required
1. Complete an amortization table for this installment note similar2. Prepare the
annual reporting period), and (b) the first annual payment on the note.
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