Question
Can somebody please help me with this accounting problem? I have attached the question and the template in which the answer is supposed to be
Can somebody please help me with this accounting problem? I have attached the question and the template in which the answer is supposed to be completed in. Thank you
Year Ending | A Beginning Carrying Amount (January 1) | B Note Payment (Cash Paid) (SEE NOTE) | C
Interest Expense | D Decrease in Notes Payable Carrying Amount Column B - C | E Ending Carrying Amount December 31 Column A - D |
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NOTE: EQUAL installments (payments). Each installment has an interest and principal component. The lender (who you are paying back) receives interest (for giving you the loan) and some of the money you borrowed (the carrying amount or principal amount of the original loan) with each payment you send them. This schedule shows how much of each payment will be applied for each payment made.
OBJ. 4,5 EX 14-10 Entries for installment note transactions On the first day of the fiscal year, Shiller Company borrowed $85,000 by giving a seven-year, 7% installment note to Soros Bank. The note requires annual payments of $15,772, with the first payment occurring on the last day of the fiscal year. The first payment consists of interest of $5,950 and principal repayment of $9,822. a. Journalize the entries to record the following: 1. Issued the installment note for cash on the first day of the fiscal year. 2. Paid the first annual payment on the note. Explain how the notes payable would be reported on the balance sheet at the end of the first year. bStep by Step Solution
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