menu
bartleby
search
close search
Hit Return to see all results
close solutoin list

Entries for installment note transactions On January 1 of Year 1, Bryson Company obtained a $147,750, four-year, 7% installment note from Campbell Bank. The note requires annual payments of $43,620, beginning on December 31 of Year 1. A. Prepare a table for this installment note, similar to the one presented in Exhibit 4. Round to the nearest dollar. B. Journalize the entries for the issuance of the note and the four annual note payments. C. Describe how the annual note payment would be reported on the Year 1 income statement.

BuyFindarrow_forward

Corporate Financial Accounting

14th Edition
Carl Warren + 2 others
Publisher: Cengage Learning
ISBN: 9781305653535

Solutions

Chapter
Section
BuyFindarrow_forward

Corporate Financial Accounting

14th Edition
Carl Warren + 2 others
Publisher: Cengage Learning
ISBN: 9781305653535
Chapter 10, Problem 10.21EX
Textbook Problem
3 views

Entries for installment note transactions

On January 1 of Year 1, Bryson Company obtained a $147,750, four-year, 7% installment note from Campbell Bank. The note requires annual payments of $43,620, beginning on December 31 of Year 1.

A. Prepare a table for this installment note, similar to the one presented in Exhibit 4. Round to the nearest dollar.

B. Journalize the entries for the issuance of the note and the four annual note payments.

C. Describe how the annual note payment would be reported on the Year 1 income statement.

A.

To determine

Installment note: It is a debt in which the borrower is required to pay equal periodic payments to the lender based on the term of the note.

Note Payable: Note payable is an obligation of the business to pay to its creditors, in future for the benefits received that carry some interest.

To prepare: A table for the installment note.

Explanation of Solution

Prepare a table for the installment note.

For the Year Ending December 31

January 1 Carrying

Amount

Note Payment (Cash Paid) Interest Expense (7% of January 1 Note Carrying Amount) Decrease in Notes Payable December 31 Carrying Amount
  A B C

D

(B – C)

E

 (A – D)

Year 1 $147,750 $43...

B.

To determine

To journalize: The entries to record issuance of note and the four annual note payments.

C.

To determine

To explain: How the annual note payment would be reported on the Year 1 income statement.

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Chapter 10 Solutions

Corporate Financial Accounting
Show all chapter solutions
add
Ch. 10 - Proceeds from notes payable On January 26, Nyree...Ch. 10 - Employee net pay Lindsey Vaters weekly gross...Ch. 10 - Journalize period payroll The payroll register of...Ch. 10 - Journalize payroll tax The payroll register of...Ch. 10 - Vacation pay and pension benefits Regling Company...Ch. 10 - Journalizing installment notes On the first day of...Ch. 10 - Estimated warranty liability Quantas Industries...Ch. 10 - Current liabilities Bon Nebo Co. sold 25,000...Ch. 10 - Entries for notes payable Bennett Enterprises...Ch. 10 - Evaluating alternative notes A borrower has two...Ch. 10 - Entries for notes payable A business issued a...Ch. 10 - Entries for discounted note payable A business...Ch. 10 - Fixed asset purchases with note On June 30,...Ch. 10 - Current portion of long-term debt PepsiCo, Inc.,...Ch. 10 - Calculate payroll An employee earns 44 per hour...Ch. 10 - Calculate payroll K. Mello Company has three...Ch. 10 - Summary payroll data In the following summary of...Ch. 10 - Payroll tax entries According to a summary of the...Ch. 10 - Payroll entries The payroll register for D. Salah...Ch. 10 - Payroll entries Widmer Company had gross wages of...Ch. 10 - Payroll internal control procedures Big Howies Hot...Ch. 10 - Internal control procedures Daves Scooters is a...Ch. 10 - Accrued vacation pay A business provides its...Ch. 10 - Pension plan entries Yuri Co. operates a chain of...Ch. 10 - Defined benefit pension plan terms In a recent...Ch. 10 - Entries for installment note transactions On the...Ch. 10 - Entries for installment note transactions On...Ch. 10 - Entries for installment note transactions On...Ch. 10 - Accrued product warranty Fosters Manufacturing Co....Ch. 10 - Accrued product warranty General Motors Company...Ch. 10 - Contingent liabilities Several months ago, Ayers...Ch. 10 - Liability transactions The following items were...Ch. 10 - Entries for payroll and payroll taxes The...Ch. 10 - Wage and tax statement data on employer FICA tax...Ch. 10 - Payroll summary The following data for Throwback...Ch. 10 - Payroll accounts and year-end entries The...Ch. 10 - liability transactions The following items were...Ch. 10 - Entries for payroll and payroll taxes The...Ch. 10 - Wage and tax statement data and employer FICA tax...Ch. 10 - Payroll summary The following data for Flexco Inc....Ch. 10 - Payroll accounts and year-end entries The...Ch. 10 - Selected transactions completed by Kornett Company...Ch. 10 - Continuing Company Analysis-Amazon: Short-term...Ch. 10 - Hershey: Short-term liquidity analysis The Hershey...Ch. 10 - Neiman Marcus and Kohls: Short-term liquidity...Ch. 10 - Cabelas and Dicks Sporting Goods: Short-term...Ch. 10 - Ethics in Action Tonya Latirno is a staff...Ch. 10 - Communication WBM Motorworks is a manufacturer of...

Additional Business Textbook Solutions

Find more solutions based on key concepts
Show solutions add
What are control limits, and how are they set?

Managerial Accounting: The Cornerstone of Business Decision-Making

What document initiates the billing process?

Accounting Information Systems

Is it better for a firms actual stock price in the market to be under, over, or equal to its intrinsic value? W...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)

Why do economists oppose policies that restrict trade among nations?

Principles of Macroeconomics (MindTap Course List)

Develop a profile of a skilled or effective negotiator.

Purchasing and Supply Chain Management