Welton Corporation established the note on the first day of its fiscal year and will fully repay the note by the end of year 3 on its December 31 fiscal year-end. Prepare Welton Corporation's journal entries on (a) January 1, Year 1; (b) December 31, Year 1; (c) December 31, Year 2; and (d) December 31, Year 3. (If no entry is required for a transaction/event, select "No Journal Entry
Welton Corporation established the note on the first day of its fiscal year and will fully repay the note by the end of year 3 on its December 31 fiscal year-end. Prepare Welton Corporation's journal entries on (a) January 1, Year 1; (b) December 31, Year 1; (c) December 31, Year 2; and (d) December 31, Year 3. (If no entry is required for a transaction/event, select "No Journal Entry
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...
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Transcribed Image Text:Access an online loan calculator with annual payments, such as the one at mycalculators.com, to produce an amortization schedule for
Welton Corporation's installment note that has original principal of $22,000, interest of 9% compounded annually, and a term of 3
years.
Welton Corporation established the note on the first day of its fiscal year and will fully repay the note by the end of year 3 on its
December 31 fiscal year-end. Prepare Welton Corporation's journal entries on (a) January 1, Year 1; (b) December 31, Year 1;
(c) December 31, Year 2; and (d) December 31, Year 3. (If no entry is required for a transaction/event, select "No Journal Entry
Required" in the first account field. Do not round intermediate calculations. Round your final answers to the nearest dollar
amount.)
View transaction list View journal entry worksheet
i
i
No
1
2
3
4
Transaction
(a)
(b)
(c)
(d)
Cash
Notes Payable (long-term)
Interest Expense
Notes Payable (long-term)
Cash
Interest Expense
Notes Payable (long-term)
Cash
General Journal
Interest Expense
Notes Payable (long-term)
Cash
Debit
22,000
Credit
22,000
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