On January 1, JCCC borrows $130,000 cash by signing a 4-year, 5% installment note. The note requires
Question:
On January 1, JCCC borrows $130,000 cash by signing a 4-year, 5% installment note. The note requires four equal payments consisting of accrued interest and principal on December 31 for each of the next four years.
Required
1. Compute the amount of each of the four equal payments. Round the answer to a whole number.
2. Prepare an amortization table for this installment note.
3. Prepare journal entries for
(a) The note’s issuance;
(b) The first payment on December 31, Year 1;
(c) The final payment on December 31, Year 4.
Step by Step Answer:
1 Initial note balance Table B3 PV factor Amount of each payment 130000 35460 36661 2 Amortization ...View the full answer
Related Video
A journal entry is an act of keeping or making records of any transactions either economic or non-economic. Transactions are listed in an accounting journal that shows a company\'s debit and credit balances. The journal entry can consist of several recordings, each of which is either a debit or a credit
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