On January 1, 2021, Cullumber Corp. borrows $9,000 by signing a 3-year, 3% note payable. The note is repayable in three annual fixedprincipal payments on December 31 of each year.Calculate the annual principal payment.Annual principal payment $eTextbook and MediaList of AccountsQuestion Part ScorePrepare an instalment payment schedule for the note.PeriodCash paymentInterest ExpenseReduction of PrincipalPrincipal BalJan. 1,2021Dec.31,2021Dec.31,2022Dec.31,2023eTextbook and MediaList of AccountsQuestion Part ScorePrepare journal entries to record the note and the first instalment payment. (Credit account titles are automatically indented whenthe amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)DateAccount Titles and ExplanationDebitCreditJan. 1,2021(Torecord issuance of note.)Dec.31,2021 Prepare journal entries to record the note and the first instalment payment. (Credit account titles are automatically indented whenthe amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)Date Account Titles and ExplanationDebitCreditJan. 1,2021(Torecord issuance of note.)Dec.31,2021(To record payment on note.)eTextbook and MediaList of AccountsQuestion Part ScoreWhat amounts would be reported as current and non-current in the liabilities section of Cullumber's balance sheet at December31, 2021?Current liability24Non-current liability24eTextbook and MediaList of Accounts

A journal entry is a form of accounting entry that is used to report a business transaction in a…

Sigriing a 3-year, paya ote is repayab IPOUUR aa principal payments on December 31 of each year. Calculate the annual principal payment. Annual principal payment s eTextbook and Media List of Accounts Question Part Score

Sigriing a 3-year, paya ote is repayab IPOUUR aa principal payments on December 31 of each year. Calculate the annual principal payment. Annual principal payment s eTextbook and Media List of Accounts Question Part Score

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

Chapter9: Current Liabilities And Contingent Obligations

Section: Chapter Questions

Problem 4E: Discounting of Notes Payable On October 30, 2019, Sanchez Company acquired a piece of machinery and...

See similar textbooks

Related questions

Q: On December, 2021 the company borrows $20,000 from Mega Bank Ltd. at 6% per annum to buy a delivery…

A: In accounting adjusting entry refers to that journal entry that are recorded at the end of the…

Q: payable with year-end adjustments LO P1 vember 1 of the current year by signing a 90-day. 11%.…

A: The person who promised to pay the specified amount by signing a note is treated as notes payable as…

Q: A man secured a ₱ 9,771 loan at 2 % interest rate. Find the annual amortization to extinguish it in…

A: Present Value of Annuity Due refers to a concept which determines the value of cash flows at present…

Q: company owes a $49,000 on a Notes Payable, Interest is accrued monthly at an annual rate of 11%.…

A: Notes payable are a promissory note and a negotiable instrument. In this one party agree to pay a…

Q: You have taken a loan of S66,000.00 for 27 years at 3.9% compounded quarterly. Fill in the table…

Q: ties: rent liabilities e payable, 6%, due in 15 years al liabilities holders' equity:

A: (a)Ratio of fixed assets to long-term liabilities = $1426600/$1019000= 1.4 times OR 140%(b)Ratio of…

Q: shows an Interest Expense balance of $500 On August 31, 2020, the company borrowed $5,000 with an…

A: Interest expenses can be defined as the interest that is payable on any borrowings such as bonds,…

Q: A company borrowed 20.000 TL from the bank signing a 9%, 3-month note on September 1. Principal and…

A: >The adjusting entries are made at the end of period to provide for correct balances for various…

Q: a. Prepare an amortization schedule for the four-year period. (Round your answers to the nearest…

A: Preparation of Amortization schedule $51,000 4 year term note, 7% on interest note : Year…

Q: On January 1 of this year, Diorite borrows $100,000 with a 5%, 9-month loan. Interest is due at…

A: Journal entries means the book of prime entry incuding debit and credit item. Adjusting entry means…

Q: Require (a): Your business issued a 14%, $300,000, one-year, note payable on April 1, 20x1. Both the…

A: Solution Adjusting entry is a entry in a company's general ledger that occurs at the end of an…

Q: At what interest rate payable quarterly will payments of Php 500 at the beginning of each 3 months…

A: The present value of the annuity is the current worth of a cash flow series at a certain rate of…

Q: horizontal model to record collection of the note and interes

A: Interest income on note receivable = Value of note * Annual interest rate * Number of months until…

Q: Mutiple choice: A hospitality company is the maker of an $18,000 note to be paid in quarterly…

A: Long term liabilities are liabilities which are expected to be paid off in the longer duration,…

Q: al interest rate of 10% and the principal is payable at the end of every q unting to P 25 000. The…

A: Interest expense refers to the expenses incurred by an entity for the borrowed money from any…

Q: A man secured a P 9,556 loan at 2 % interest rate. Find the annual amortization to extinguish it in…

A: Given information: Loan amount is 9,556 Interest rate is 2% Number of years is 3

Q: on June 8th Alton Co issued in 62700 8% 120 Day note payable to seller Co. Assume that the fiscal…

A: Notes payable is a negotiable instrument issued by a promisor that includes a promise to pay a…

Q: On January 1, Luther Co. issued a $1,000,000, 8%, 5-year installment note payable. The first note…

A: Notes Payable:- It is a Current liability where one person is liable to pay and another one is…

Q: Campus Flights takes out a bank loan in the amount of $210,000 on March 1. The terms of the loan…

A: Laon amortization schedule means where repayment during the life of loan is written with interest.

Q: The amount of interest to be accrued at the end of September is

A: Accrued interest on note payable is the outstanding interest amount which is accrued or outstanding…

Q: Quarterly payments of P3,500 for 3 years that will start 6 months from now. Find its Period of…

A: Annuity refers to series of equalized payments that are either made start or end of definite period.…

Q: rest payable monthly was incurred. To settle the debt, the debtor agreed to pay P 1000 interest…

A: The given problem can be solved via NPER and FV function in excel. NPER function computes no. of…

Q: 1 a. On January 01, 2021 Mr. Devid was granted Car Loan of Taka 10,00,000 to be paid by quarterly…

A: Quarterly interest rate = 12% / 4 = 3% Quarterly Periods = 2 * 4 = 8 Installment = Loan Amount /…

Q: est included, by equal pa at of each month for 3 years. If interest is ple monthly at the rate 5%…

A: in this we have to calculate present value FACTOR monthly and from that we get monthly payments.

Q: Beginning in January, a person plaras to deposit S100 at the ond of each month into an account eamng…

A: In an ordinary annuity, the regular payments are made at the end of every period. Future Value of…

Q: On December 1, 2021, Liang Chemical provides services to a customer for $90,000. In payment for the…

A: Please find below all the journal entries -

Q: A company grants a payment extension to its customer by converting that $15,000 accounts payable to…

A: Interest on 45 days note for 30 days 115000*12%*30/360=$150

Q: . Elmo borrowed $25,000 from the Statler & Waldorf Bank at 12% APR, compounded monthly. The loan is…

A: Loan amount (PV) = $ 25,000 Annual interest rate = 12% Monthly interest rate (r) = 12%/12 = 1%…

Q: Joan Messineo borrowed $50,000 at a 5% annual rate of interest to be repaid over 3 years. The loan…

A: Given that, Borrowed amount (PV)=$50,000 Rate of interest (i)=0.05 Duration (n)=3 years As per the…

Q: Sherman Charter signed a four-month note payable in the amount of $18,000 on September 1. The note…

A: Note: Adjusting entry on September 30 will be made to record the accrued interest for the period…

Q: On 04-01-18, S borrowed $2,400,000 at 3%. S made semi-annual interest payments on 10-01-18 and…

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

Q: On November 1, 2021, Aviation Training Corp. borrows $60,000 cash from Community Savings and Loan.…

A: Journal entry: It is prepared to record the financial and non-financial transaction of the…

Q: Determining current portion of long-term note payable On January 1, Irving Company purchased…

A: “Hey, since there are multiple questions posted, we will answer first question. If you want any…

Q: isation schedule for a filling station. an will be paid off in 15 years. hOutstanding principal at…

A: Effective interest rate is interest rate considering the impact of compounding on interest rate on…

Q: a hypothetical financial instrument pays 10% annual interest permanently. It pays interest at the…

A: Here, Annual interest rate = 10% YTM = 12% monthly To Find: Part a. Macaulay duration =? Part b.…

Q: A man secured a P 7,498 loan at 4 % interest rate. Find the annual amortization to extinguish it in…

A: Present value of an annuity: It is the value of all future payments at the present date at some…

Q: (b) A home loan of $300,000 is to be repaid by equal monthly instalments (at the end of each month)…

A: Interest payment = Outstanding balance * Interest rate Principal repayment = Monthly payment -…

Q: THE AMORTIZATION SCHEDULE Amount repaid Interest at 10% due at Periodic payment Outstanding…

A: Loan amortization refers to a schedule which is prepared to shows the periodic loan payments, amount…

Q: Aubrey Daniel’s savings account has a principal of $5,725. It earns 4% interest compounded quarterly…

A: The future value function or concept can be used to determine the future value of a present sum or…

Q: Indicate the transaction price for this situation and when revenue will be recognized Groupo sels…

A: Under instalment sales method, Sales value is collected from customers not in lump sum value, but in…

Q: On June 1, ACME Incorporated borrows $75,000 on a six-month, 4% note. Interest and principal are to…

A: The journal entries keep the record of business transactions on the regular basis. The note payable…

Q: On June 1, Sunland Company borrows 108,000 from First Bank on a 6 month, $108,000, 8% note.…

A: Journal entry: It is also called as book of original entry. All financial transactions occurred in a…

Question

On January 1, 2021, Cullumber Corp. borrows $9,000 by signing a 3-year, 3% note payable. The note is repayable in three annual fixed
principal payments on December 31 of each year.
Calculate the annual principal payment.
Annual principal payment $
eTextbook and Media
List of Accounts
Question Part Score
Prepare an instalment payment schedule for the note.
Period
Cash payment
Interest Expense
Reduction of Principal
Principal Bal
Jan. 1,
2021
Dec.
31,
2021
Dec.
31,
2022
Dec.
31,
2023
eTextbook and Media
List of Accounts
Question Part Score
Prepare journal entries to record the note and the first instalment payment. (Credit account titles are automatically indented when
the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)
Date
Account Titles and Explanation
Debit
Credit
Jan. 1,
2021
(Torecord issuance of note.)
Dec.
31,
2021

Prepare journal entries to record the note and the first instalment payment. (Credit account titles are automatically indented when
the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)
Date Account Titles and Explanation
Debit
Credit
Jan. 1,
2021
(Torecord issuance of note.)
Dec.
31,
2021
(To record payment on note.)
eTextbook and Media
List of Accounts
Question Part Score
What amounts would be reported as current and non-current in the liabilities section of Cullumber's balance sheet at December
31, 2021?
Current liability
24
Non-current liability
24
eTextbook and Media
List of Accounts

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1x

Step 2

Step 3

Step 4

Step 5

Step by step

Solved in 5 steps with 6 images

SEE SOLUTION Check out a sample Q&A here

Similar questions

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.)
Chemical Enterprises issues a note in the amount of $156,000 to a customer on January 1, 2018. Terms of the note show a maturity date of 36 months, and an annual interest rate of 8%. What is the accumulated interest entry if 9 months have passed since note establishment?
Spath Company borrows 75,000 by issuing a 4-year, noninterest-bearing note to a customer on January 1, 2019. In addition, Spath agrees to sell inventory to the customer at reduced prices over a 5-year period. Spaths incremental borrowing rate is 12%. The customer agrees to purchase an equal amount of inventory each year over the 5-year period so that a straight-line method of revenue recognition is appropriate. Required: Prepare the journal entries on Spaths books for 2019 and 2020. (Round answers to 2 decimal places.)
Jain Enterprises honors a short-term note payable. Principal on the note is $425,000, with an annual interest rate of 3.5%, due in 6 months. What journal entry is created when Jain honors the note?
Lime Co. incurs a $4,000 note with equal principal installment payments due for the next eight years. What is the amount of the current portion of the noncurrent note payable due in the second year? A. $800 B. $1,000 C. $500 D. nothing, since this is a noncurrent note payable
On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to McLaughlin Company for cash. McLaughlin Company charges a 750 service fee, advances 85% of Jordans accounts receivable, and charges an annual interest rate of 9% on any outstanding loan balance. Prepare the related journal entries for Jordan.
On January 1, 2019, Park Company accepted a 36,000, non-interest-bearing, 3-year note from a major customer in exchange for used equipment. The equipment had originally cost Park 200,000 and had a book value of 20,000 on the date of the sale. At the 12% imputed interest rate for this type of loan, the present value of the note is 25,500 on January 1, 2019. Park uses the effective interest rate. What is the carrying value of the note receivable on Parks December 31, 2019, balance sheet? a. 28,560 b. 29,000 c. 32,500 d. 36,000
On July 1, 2019, Aldrich Company purchased as an available-for-sale security 200,000 face value, 9% U.S. Treasury notes for 194,000. The notes mature July 1, 2020, and pay interest semiannually on January 1 and July 1. The notes were sold on December 1, 2019, for 199,000. Aldrich normally uses straight-line amortization on all of its notes. In its income statement for the year ended December 31, 2019, what amount should Aldrich report as a gain on the sale of the available-for-sale security? a. 2,500 b. 3,500 c. 5,000 d. 6,000
Non-Interest-Bearing Notes Payable On November 16, 2019, Clear Glass Company borrowed 20,000 from First American Bank by issuing a 90-day, non-interest-bearing note. The bank discounted this note at 12% and remitted the difference to Clear Glass. Required: 1. Prepare the journal entries of Clear Glass to record the preceding information, the related calendar year-end adjusting entry, and payment of the note at maturity. 2. Show how the preceding items Would be reported on the December 31, 2019, balance sheet. 3. Next Level What is Clear Glass Companys effective interest rate?
Discounting of Notes Payable On October 30, 2019, Sanchez Company acquired a piece of machinery and signed a 12-month note for 24,000. The lace value of the note includes the price of the machinery and interest. The note is to be paid in four 6,000 quarterly installments. The value of the machinery is the present value of the four quarterly payments discounted at an annual interest rate of 16%. Required: 1. Prepare all the journal entries required to record the preceding information including the year-end adjusting entry and any payments. Present value techniques should be used. 2. Show how the preceding items would be reported on the December 31, 2019, balance sheet.