Entries for Installment Note Transactions On January 1, Year 1, Bryson Company o
ID: 2547261 • Letter: E
Question
Entries for Installment Note Transactions
On January 1, Year 1, Bryson Company obtained a $66,000, four-year, 8% installment note from Campbell Bank. The note requires annual payments of $19,927, beginning on December 31, Year 1.
a. Prepare an amortization table for this installment note, similar to the one presented in Exhibit 4.
Note: Round the computation of the interest expense to the nearest whole dollar. Enter all amounts as positive numbers. In Year 4, round the amount in the Decrease in Notes Payable column either up or down to ensure that the Carrying Amount zeroes out.
.. . Cengage CengageNOWv2 | Onl X C Chegg Study | Guided SolNews | Dashboard Samsung Galaxy S9 Plus O v2 cengageno con ilm takeAss gnment take ssignmentain doinvoker-assignments takeAssignmentsess on ocator-assignment t Ch 14-3 Exercises and Problems Show Me How Calculator Print item eBook Amortization of Installment Notes 1. EX.14-05.BLANKSHEET AL.. Year Ending December 31 Interest Expense (8% of January 1 Note Carrying Amount) December 31 Carrying Amount 2. EX.14-06.ALGO Decrease in January 1 Carrying Amount Note Payment (Cash Paid) Notes Payable 3. EX.14-07.ALGO Year 1 4. EX. 14-08,BLANKSHEETAL… Year 2 Year 3 Year 4 5. EX.14-09.ALGO 6. EX.14-12.ALGO 7. EX. 14-14.ALGO b. Journalize the entries for the issuance of the note and the four annual note payments Note: For a compound transaction, if an amount box does not require an entry, leave it blank. For the Year 4 entry (due to rounding), adjust Notes Payable up or down to ensure that debits equal credits. Year 1 Jarn. 1 Year 1 Dec. 31 Check My Work 2 more Check My Work uses remaining Previous Next Progress: 6/7 items Assignment Score: 0.0% All work saved. Email Instructor Save and Exit Submit Assignment for Grading 9:1 PM Type here to search /19/2018 2Explanation / Answer
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c)Interest expense of $ 5280 would be reported on income statement as repayment of note is a payment of liability portion
Amortisation Table year ending Jan 1 carrying value Note payment (cash paid) Interest expense Decrease in note payable carrying value at dec 31 31 dec year 1 66000`` 19927 5280 [66000*.08] 19927-5280=14647 66000-14647=51353 year2 51353 19927 4108 [51353*.08] 15819 35534 year3 35534 19927 2843 17084 18450 year 4 18450 19927 1477 18450 0 79708 13708 66000Related Questions
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