Question
1a. On January 1, 2021, Julee Enterprises borrows $34,000 to purchase a new Toyota Highlander by agreeing to a 5%, 4-year note with the bank.
1a. On January 1, 2021, Julee Enterprises borrows $34,000 to purchase a new Toyota Highlander by agreeing to a 5%, 4-year note with the bank. Payments of $783.00 are due at the end of each month with the first installment due on January 31, 2021. Record the issuance of the note payable and the first two monthly payments. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations. Round your answers to 2 decimal places.)
1b.
Presented below is a partial amortization schedule for Discount Foods:
Interest | Increase in | Carrying | ||||||||||
Period | Cash Paid | Expense | Carrying Value | Value | ||||||||
Issue Date | $ | 74,600 | ||||||||||
1 | $ | 2,400 | $ | 2,984 | $ | 584 | 75,184 | |||||
2 | 2,400 | 3,007 | 607 | 75,791 | ||||||||
Required: 1. & 2.Record the bond issue assuming the face value of bonds payable is $90,000 and first interest payment. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)
1c.
Presented below is a partial amortization schedule for Premium Foods:
Interest | Increase in | Carrying | ||||||||||
Period | Cash Paid | Expense | Carrying Value | Value | ||||||||
Issue Date | $ | 85,940 | ||||||||||
1 | $ | 4,000 | $ | 3,438 | $ | 562 | 85,378 | |||||
2 | 4,000 | 3,415 | 585 | 84,793 | ||||||||
Required: 1. & 2.Record the bond issue assuming the face value of bonds payable is $76,000 and first interest payment. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started