Parker & Washington, Inc. borrows $120,000 on January 1, 2021. They must pay back the loan, with 6% interest, on January 1, 2022. P&W closes its books to prepare financial reports quarterly on March 31, June 30, September 30, and December 31. For the journal entries below, use the following abbreviations: CASH = cash, INTEXP = interest expense, INTINC = interest income, INTPAY = interest payable, INTREV = interest receivable, LOAN = loan payable. For part d, enter the multiple debit accounts in alphabetical order, for example, CASH before INTPAY. a Prepare the journal entry for January 1, 2021. Debit: Credit: b Prepare the joumal entry for March 31, 2021. Debit: Credit: e Assuming that appropriate journal entries were made on June 30, 2021, and Sept. 30, 2021, prepare the journal entry for December 31, 2021. Debit: Credit: d Prepare the journal entry for January 1, 2022. Debit: Debit: Credit: e How much total interest expense did Parker & Washington recognize in calendar year 2021? $

Parker & Washington, Inc. borrows $120,000 on January 1, 2021. They must pay back the loan, with 6% interest, on January 1, 2022. P&W closes its books to prepare financial reports quarterly on March 31, June 30, September 30, and December 31. For the journal entries below, use the following abbreviations: CASH = cash, INTEXP = interest expense, INTINC = interest income, INTPAY = interest payable, INTREV = interest receivable, LOAN = loan payable. For part d, enter the multiple debit accounts in alphabetical order, for example, CASH before INTPAY. a Prepare the journal entry for January 1, 2021. Debit: Credit: b Prepare the joumal entry for March 31, 2021. Debit: Credit: e Assuming that appropriate journal entries were made on June 30, 2021, and Sept. 30, 2021, prepare the journal entry for December 31, 2021. Debit: Credit: d Prepare the journal entry for January 1, 2022. Debit: Debit: Credit: e How much total interest expense did Parker & Washington recognize in calendar year 2021? $

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable

Section: Chapter Questions

Problem 30E

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On January 1, 2018, King Inc. borrowed $150,000 and signed a 5-year, note payable with a 10% interest rate. Each annual payment is in the amount of $39,569 and payment is due each Dec. 31. What is the journal entry on Jan. 1 to record the cash received and on Dec. 31 to record the annual payment? (You will need to prepare the first row in the amortization table to determine the amounts.)
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