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During the pandemic, Turtleford Tattoos realized an increase in their operations as new and existing clients were wanting tattoos to encourage them after being socially
During the pandemic, Turtleford Tattoos realized an increase in their operations as new and existing clients were wanting tattoos to encourage them after being socially distant for so long. The company had to hire additional staff to accommodate the increase in business. Since Turtleford provides its tattoo artists with the intricate equipment supplies and sterilization apparatus needed, it needed to secure finances by borrowing money from the bank. The details of the loan are as follows: Amount borrowed from the bank $45,000 Date the long-term note was issued January 1, 2021 Term of the note payable, in years 3 years Annual Frequency of payments 5% Interest rate, set by the bank March 31, 2021 Turtleford Tattoos' year-end date REQUIRED: 1. Determine the annual payment of the Note Payable. 2. Prepare three years of the amortization schedule for the Note Payable. 3. Prepare the following journal entries, with the applicable dates: a. Issuance of the Note Payable. b. Year-end accrual required on the company's year-end date. c. The first payment on the Note Payable
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