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Tony s favorite memories of his childhood were the times he spent with his dad at camp. Tony was daydreaming of those days a bit
Tonys favorite memories of his childhood were the times he spent with his dad at camp. Tony was daydreaming of those days a bit as he and Suzie jogged along a nature trail and came across a wonderful piece of property for sale. He turned to Suzie and said, Ive always wanted to start a camp where families could get away and spend some quality time together. If we just had the money, I know this would be the perfect place. On November Great Adventures purchased the land by issuing a $year installment note to the seller. Payments of $ are required at the end of each month over the life of the year loan. Each monthly payment of $ includes both interest expense and principal payments ie reduction of the loan amount
Late that night, Tony exclaimed, We now have land for our new camp; this has to be the best news ever! Suzie said, Theres something else I need to tell you. Im expecting!
Required:
Complete the first three rows of an amortization schedule.
Record the purchase of land with the issuance of a longterm note payable on November
a Record the first two payments on November and December
b Calculate the remaining balance of the note payable as of December
The monthly payments in following year will reduce the notes balance by an additional $ Record the reclassification of this amount from Notes Payable longterm to Notes Payable current
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