On January 1, 2016, Bryson Company obtained a $141,500, four-year, 8% installmen
ID: 2422253 • Letter: O
Question
On January 1, 2016, Bryson Company obtained a $141,500, four-year, 8% installment note from Campbell Bank. The note requires annual payments of $42,722, beginning on December 31, 2016.
Required:
Exhibit 4
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Chart of Accounts
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Amortization table
A. Prepare an amortization table for this installment note, similar to the one presented in
Exhibit 4
. Round amounts to the nearest dollar.
The balance of the bonds payable account (face amount of the bonds) less any unamortized discount or plus any unamortized premium.
Points:
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Explanation
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Journal
B. Journalize the entries for the issuance of the note and the four annual note payments. Be sure to include the year in the date for the entries. Refer to the Chart of Accounts for exact wording of account titles.
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JOURNAL
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Solution
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Points:
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Final Question
c. Describe how the annual note payment would be reported in the 2016 income statement.
Interest expense of would be reported on the income statement.
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Explanation
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A. Prepare an amortization table for this installment note, similar to the one presented inExhibit 4
. B. Journalize the entries for the issuance of the note and the four annual note payments. Be sure to include the year in the date for the entries. Refer to the Chart of Accounts for exact wording of account titles. C. Describe how the annual note payment would be reported in the 2016 income statement.Explanation / Answer
Amortisation table
b)Journal entries
3)Income statment we will charge 11,320 interest on note payable
for the year end Carrying amount Note payment Interest expense decrease in notes paayble Balance dec 31,2016 141,500 42,722 11,320 31402 110,098 Dec 31,2012 110,098 42,722 8,808 33,914 76,184 Dec 31 , 2017 76,184 42,722 6,095 36,627 39,557 Dec 31,2019 39,557 42,722 3,165 39,557 -0-Related Questions
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