Kimmel, Financial Accounting, SeHelo I Systern Arnouncernentsroblem 10-12A (Part Level Submission)verne purchased a new piece of equipment to be used in its new facility. The $415,000 piece of equipment was purchased with a $62,250 down paymert and with cash receteed thee52.750, 7%, 5-year mortgage payable issued on January 1, 2017. The terms provide for annual installment payments of $86,032 on Decermber 31.(a)pare an installment payments schedule for the first five payments of the notes payable. (Round answers to 0 decimal places, e.g. 125.)AnnualCashInterestReductionerest PeriodPaymentof PrincipalPrincipalBalanceExpenseSsue Date4.unt may be off due to rounding.af you would like to Show Work for this question: Open Show WorkWIIST OF ACCOUNTSSATO TEXTLINK TO TEXXTAttempts: 0 of 3 ased%24%24%242. Kimmel, Financial Accounting, SeHello ISystem AnnouncernentsCALCULATORINTER VERS3ONProblem 10-12A (Part Level Submission)taverme purchased a new piece of equipment to be used in its new facility. The $415,000 piece of equipment was purchased with a $62,250 down payment and with cash received through$352,750, 7%, 5-year mortgage payable issued on January 1, 2017. The terms provide for annual installment payments of $86,032 on December 31.(e) APrepare an installment payments schedule for the first five payments of the notes payable. (Round answers to 0 decimal places, e.g. 125.)AnnualInterest PeriodCashInterestExpenseReductionof PrincipalPrincipalBalancePaymentIssue Date$42.3.4.5.Amount may be off due to rounding.Click if you would like to Show Work for this question: Open Show WorkSHO LISE OF ACCOUNTSTEXT CINK TO TEXTSAVE FOR LATtsAttempts: 0 of 3 used%24

Particulars Amount $ Cost of equipment $ 415,000 Less: Down payment $ 62,250…

Prepare an installment payments schedule for the first five payments of the notes payable. (- Annual Cash Interest Reduction of Principal Principal Balance Interest Period Payment Expense Issue Date 2. 3\

Prepare an installment payments schedule for the first five payments of the notes payable. (- Annual Cash Interest Reduction of Principal Principal Balance Interest Period Payment Expense Issue Date 2. 3\

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Macy company had the following loans outstanding for the entire year 2017.Specific construction loan 2,000,000 10%General Loan 40,000,000 12%The entity began the self construction of a building on January 1, 2017 and the building was completed on Dec.31, 2017. The following expenditures were made during the current year.January 1 2,000,000July 1 4,000,000November 1 6,000,000Total 12,000,000Required: Compute the cost the new buildin
(e) On December 31, 2015, Malton Company acquired a computer from Hamilton Corporation by issuing a $600,000 zero-interest-bearing note, payable in full on December 31, 2019. Malton Company’s credit rating permits it to borrow funds from its several lines of credit at 10%. The computer is expected to have a 5-year life and a $70,000 residual value. Prepare the journal entry for the purchase on December 31, 2015 and any necessary adjusting entries relative to depreciation (use straight-line) and amortization on December 31, 2016.
i) Company X Financial Year ends March 31. A laptop purchased 02 August 2018 at a cost of P9,500 was disposed off in January 2020 for P6800. Assuming the organisation follows local GAAPS on depreciation, provide the Journal Entries for this transaction. Outline all assumptions used. (ii) The following in being considered: Purchase of an office building worth P1M from unrestricted funding. Currently, the office building is on a 2-year lease, with rentals of BWP22,000 per month. 11 Provide your recommendations to the Finance Manager. What would be the possible effect on the Financial Health of the organisation if these transactions are approved (iii) List any key financial controls for an NGO and why these are important. (iv) Company X’s year-end is March 31. It is now April 4. A staff member asks you to process an unpaid invoice with details as follows: The invoice is for bus transportation in the amount of P800 and is dated April 2. The invoice indicates the charges relate to…
Arcana Company self-constructed an asset for its own use. Construction stated on January 1, 2017 and the asset was completed on December 31, 2017. The company had a two-year, 18% loan of P500,000, specifically obtained to finance the asset construction. Funds not yet needed during the construction were temporarily invested in a short-term debt securities yielding a P10,000 interest revenue. Costs incurred during the year were as follows: January 1 – P400,000 April 1 – P500,000 August 1 – P480,000 December 1 – P180,000 1) What is the capitalized interest added to the cost of the self-constructed asset? A. 90,000 B. 80,000 C. 180,000 D. 0 2) How much is the total cost of the self-constructed asset? A. 1,650,000 B. 1,560,000 C. 1,640,000 D. 1,070,000
Please no written by hand solutions Prepare journal entries to record the following transactions. You are required to show all calculations: 3.1 The company adopted the straight-line depreciation method. Record the 15% depreciation on the plant and equipment purchased On 1 December 2020 for R125 000. 3.2 The allowance for credit losses account has an opening balance of R4 500. The policy requires the allowance to equate 8% of the total accounts receivable. The debtors sub-ledger totaled R52 000 prior receiving 40c in the rand on an account of R3 000. The financial manager instructed the write off on the balance. Entry General Ledger Debit Credit.
Jewelry Company had the following outstanding loans during 2017 and 2018.Specific construction loan 3,600,000 10%General loan 30,000,000 12%The entity began the self-construction of a new building on January 1, 2017 and the building was completed on June 30, 2018. The following expenditures were made:January 1, 2017 4,800,000April 1, 2017 6,000,000December 1, 2017 3,600,000March 1, 2018 7,200,000Required: Compute for the cost of the building on December 31, 2017 and on June 30, 2018.
Kessel Company purchased a building and land with a fair market value of $475,000 (building, $300,000 and land, $175,000) on January 1, 2018. Kessel signed a 25- year, 8% mortgage payable. Kessel will make monthly payments of 3,666.13. Round to two decimal places. Explanations are not for journal entries. Requirements 1. Journalize the mortgae payable issuance on January 1, 2018. 2. Prepare an amortization schedule for the first two payments. 3. Journalize the first payment on January 31, 2018. 4. Journalize the second payment on February 28, 2018
Island Solutions started construction of a new office building for its own use at an estimated cost of $5 000 000 on January 1, 2022, and completed the construction on December 31, 2022. i During the year of construction (2022) the company had outstanding the following debt obligations. ii. Specific Construction Debt: $2 000 000 12% note issued December 31, 2021. Interest payable semi-annually iii. Other Debt: $1 400 000 10% short-term loan. Interest payable monthly and principal payable at maturity on May 30, 2023, $1 000 000 11% long-term loan. Interest payable on January 1 of each year and principal payable at maturity on January 1, 2025 Total expenditures - $5 200 000 Weighted average accumulated expenditures - $3 500 000 One of the accounting interns on the other team having reviewed the statement of financial position commented that it just did not make any sense, this ’avoidable interest’. Isn’t all interest unavoidable? No one lends money without expecting to be compensated for…
4 - Our company has purchased a machine for 600.000 TL excluding 18% VAT. He paid 47.200 TL, including 18% VAT, for the assembly of the machine in question. Which of the following accounts is correct to use in the relevant accounting record ? a) 253 Plant Machinery and Equipment Hs. 600.000 TL (Borrower) B) 191 VAT Deductible 115.200 TL (Creditor) NS) 391 Calculated VAT Hs. 72.000 TL (Borrower) D) 253 Plant Machinery and Equipment Hs. 640.000 TL (Borrower) TO) 253 Plant Machinery and Equipment Hs. 755,200 TL (Borrower)
Island Solutions started construction of a new office building for its own use at an estimated cost of $5000 000 on January 1, 2022, and completed the construction on December 31, 2022.j. During the year of construction (2022) the company had outstanding the following debtobligations.i. Specific Construction Debt:$2 000 000 12% note issued December 31, 2021. Interest payable semiannuallyii. Other Debt:$1 400 000 10% short-term loan. Interest payable monthly and principal payable at maturityon May 30, 2023$1 000 000 11% long-term loan. Interest payable on January 1 of each year and principalpayable at maturity on January 1, 2025B. Total expenditures - $5 200 000C. Weighted average accumulated expenditures - $3 500 000One of the accounting interns on the other team having reviewed the statement of financial positioncommented that it just did not make any sense… this ’avoidable interest’…. In reality, isn’t all interestunavoidable …. No one lends money without expecting to be compensated…
Wilkins Food Products Inc. acquired a packaging machine from Lawrence Specialists Corporation. Lawrence completed construction of the machine on January 1, 2016. In payment for the machine Wilkins issued a three-yearinstallment note to be paid in three equal payments at the end of each year. The payments include interest at the rateof 10%. Lawrence made a conceptual error in preparing the amortization schedule, which Wilkins failed to discoveruntil 2018. As a result of the error, Wilkins understated interest expense by $45,000 in 2016 and $40,000 in 2017.Required:1. Determine which accounts are incorrect as a result of these errors at January 1, 2018, before any adjustments.Explain your answer. (Ignore income taxes.)2. Prepare a journal entry to correct the error.3. What other steps would be taken in connection with the error?
Sandhill Co. sells office equipment on July 31, 2022, for $22,430 cash. The office equipment originally cost $77,870 and as of January 1, 2022, had accumulated depreciation of $36,830. Depreciation for the first 7 months of 2022 is $4,580.Prepare the journal entries to (a) update depreciation to July 31, 2022, and (b) record the sale of the equipment.