Red Robin borrowed money to purchase a vehicle this year for $47,210. The vehicle loan is an installment loan with a 6-year life and 8% interest due quarterly. The vehicle was purchased on April 1, so the first loan payment is due June 30. See amortization table below: Vehicle Loan Amortization Principal Interest Years Payments/year Payment Date 6/30/22 9/30/22 12/31/22 3/31/23 6/30/23 9/30/23 12/31/23 3/31/24 6/30/24 9/30/24 12/31/24 3/31/25 6/30/25 9/30/25 12/31/25 3/31/26 6/30/26 9/30/26 12/31/26 3/31/27 $47,210 8.00% 6 4 2,496 Interest Principal Payment Balance 47,210 45,658 44,075 42,461 944 1,552 2,496 913 1,583 2,496 882 1,615 2,496 849 1,647 2,496 40,814 816 1,680 2,496 39,134 783 1,713 2,496 37,421 748 1,748 2,496 35,673 713 1,783 2,496 33,891 678 1,818 2,496 32,072 641 1,855 2,496 30,218 604 1,892 2,496 28,326 567 1,930 2,496 26,397 528 1,968 2,496 24,428 489 2,007 2,496 22,421 448 2,048 2,496 20,373 407 2,089 2,496 18,285 366 2,130 2,496 16,154 323 2,173 2,496 13,981 280 2,216 2,496 11,765 235 2,261 2,496 9,504

Red Robin borrowed money to purchase a vehicle this year for $47,210. The vehicle loan is an installment loan with a 6-year life and 8% interest due quarterly. The vehicle was purchased on April 1, so the first loan payment is due June 30. See amortization table below: Vehicle Loan Amortization Principal Interest Years Payments/year Payment Date 6/30/22 9/30/22 12/31/22 3/31/23 6/30/23 9/30/23 12/31/23 3/31/24 6/30/24 9/30/24 12/31/24 3/31/25 6/30/25 9/30/25 12/31/25 3/31/26 6/30/26 9/30/26 12/31/26 3/31/27 $47,210 8.00% 6 4 2,496 Interest Principal Payment Balance 47,210 45,658 44,075 42,461 944 1,552 2,496 913 1,583 2,496 882 1,615 2,496 849 1,647 2,496 40,814 816 1,680 2,496 39,134 783 1,713 2,496 37,421 748 1,748 2,496 35,673 713 1,783 2,496 33,891 678 1,818 2,496 32,072 641 1,855 2,496 30,218 604 1,892 2,496 28,326 567 1,930 2,496 26,397 528 1,968 2,496 24,428 489 2,007 2,496 22,421 448 2,048 2,496 20,373 407 2,089 2,496 18,285 366 2,130 2,496 16,154 323 2,173 2,496 13,981 280 2,216 2,496 11,765 235 2,261 2,496 9,504

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 1PA: On January 1, 2018, King Inc. borrowed $150,000 and signed a 5-year, note payable with a 10%...

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Prepare all journal entries and adjusting journal entries necessary to record all of Red Robin's transactions related to the note payable information below: Red Robin purchased the building on January 1, 2019, for $496,300 using a note payable. The loan is a 30-year, 5% installment loan with annual payments due every December 31. See amortization table below: Building Loan Amortization Principal Interest Years Payments/year Payment Date 31-Dec-19 31-Dec-20 31-Dec-21 31-Dec-22 31-Dec-23 31-Dec-24 31-Dec-25 31-Dec-26 31-Dec-27 31-Dec-28 31-Dec-29 31-Dec-30 31-Dec-31 31-Dec-32 31-Dec-33 31-Dec-34 31-Dec-35 31-Dec-36 31-Dec-37 31-Dec-38 31-Dec-39 31-Dec-40 31-Dec-41 31-Dec-42 31-Dec-43 31-Dec-44 31-Dec-45 31-Dec-46 31-Dec-47 31-Dec-48 $496,300 5.00% 30 1 32,285 Interest Principal Payment Balance 496,300 488,830 480,986 7,470 32,285 7,844 32,285 24,815 24,441 24,049 32,285 23,638 32,285 23,205 32,285 22,751 32,285 22,274 10,011 32,285 21,774 10,511 32,285 21,248 11,037 32,285 8,236 8,647…
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