Recording Entries for an Installment Note Payable On January 1 of Year 1, a borrower signed a long-term note, face amount of $240,000; time to maturity is three years; stated rate of 8%. The market rate is 10%. The note will be paid in three equal annual installments of $93,127 on each December 31 (which is the accounting year-end for the borrower). Required Note: Round your answer to the nearest whole dollar. a. Compute the cash received by the borrower. $ 0 b. Prepare a debt amortization schedule. Note: Round each amount in the table to the nearest whole dollar. Note: Use a negative sign for the "Reduction in N.P." amounts. Date Jan. 1, Year 1 Dec. 31, Year 1 $ Dec. 31, Year 2 $ Dec. 31, Year 3 $ Total $ Cash 0 $ 0 $ 0 $ 0 $ Interest Expense Reduction in N.P. 0 $ 0 $ 0 $ 0 $ $ 0 $ 0 $ 0 $ 0 Carrying Value 0 0 0 0

Recording Entries for an Installment Note Payable On January 1 of Year 1, a borrower signed a long-term note, face amount of $240,000; time to maturity is three years; stated rate of 8%. The market rate is 10%. The note will be paid in three equal annual installments of $93,127 on each December 31 (which is the accounting year-end for the borrower). Required Note: Round your answer to the nearest whole dollar. a. Compute the cash received by the borrower. $ 0 b. Prepare a debt amortization schedule. Note: Round each amount in the table to the nearest whole dollar. Note: Use a negative sign for the "Reduction in N.P." amounts. Date Jan. 1, Year 1 Dec. 31, Year 1 $ Dec. 31, Year 2 $ Dec. 31, Year 3 $ Total $ Cash 0 $ 0 $ 0 $ 0 $ Interest Expense Reduction in N.P. 0 $ 0 $ 0 $ 0 $ $ 0 $ 0 $ 0 $ 0 Carrying Value 0 0 0 0

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 1EA: Campus Flights takes out a bank loan in the amount of $200,500 on March 1. The terms of the loan...

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