i WileyPLUS ://edugen wileyplus.com/edugen/student/mainfr.uni Weygandt, Financia
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Question
i WileyPLUS ://edugen wileyplus.com/edugen/student/mainfr.uni Weygandt, Financial Accounting: IFRS, 3e Gradebook ORION Downloadable eTextbook ent Problem 10-5A Talkington Electronics note are to be used in financing a new research laboratory. The terms of the note provide for annual installment issues a R$400,000, 8% 10-year mortgage note on December 31, 2016. The proceeds from the of real estate taxes and insurance, of R$59,612. Payments are due on December 31. payments, excdusive places, e.g. 15,250.) Prepare an installment payments schedule for the first 4 years. (Round answers to 0 decimal of Pr R$ Issue Date RS R$ R$ 10 Prepare the entries for (1) the loan and (2) the first installment payment. (Credit account titles are automatically ted when amount is entered. Do not indent manually,) Account Titles and Explanation Dehit Dec. 31, 2016 All Rights Reserved. A Dvision ofExplanation / Answer
Answer
Annual Interest period
Cash Payment
Interest Expenses
Reduction in Principal
Principal Balance
Issue date
$ 4,00,000.00
1
$ 59,612.00
$ 32,000.00
$ 27,612.00
$ 3,72,388.00
2
$ 59,612.00
$ 29,791.04
$ 29,820.96
$ 3,42,567.04
3
$ 59,612.00
$ 27,405.36
$ 32,206.64
$ 3,10,360.40
4
$ 59,612.00
$ 24,828.83
$ 34,783.17
$ 2,75,577.24
Date
General Journal
Debit
Credit
31-Dec-16
Cash
$ 4,00,000.00
Notes payable
$ 4,00,000.00
31-Dec-17
Notes Payable
$ 27,612.00
Interest expense
$ 32,000.00
Cash
$ 59,612.00
Income Statement:
Interest Expense
$ 32,000.00
Long Term Liabilities [Balance Sheet-Liability]
Notes Payable
$ 3,72,388.00
Annual Interest period
Cash Payment
Interest Expenses
Reduction in Principal
Principal Balance
Issue date
$ 4,00,000.00
1
$ 59,612.00
$ 32,000.00
$ 27,612.00
$ 3,72,388.00
2
$ 59,612.00
$ 29,791.04
$ 29,820.96
$ 3,42,567.04
3
$ 59,612.00
$ 27,405.36
$ 32,206.64
$ 3,10,360.40
4
$ 59,612.00
$ 24,828.83
$ 34,783.17
$ 2,75,577.24
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