Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Entries for Instaliment Note Transactions On January 1 of Year 1, Bryson Company obtained a $33,000, four-year, 8% instaliment note from Campbell Bank; The note

image text in transcribed
image text in transcribed
image text in transcribed
Entries for Instaliment Note Transactions On January 1 of Year 1, Bryson Company obtained a $33,000, four-year, 8% instaliment note from Campbell Bank; The note requires annual parments of s9,963, beginning on December 31 of Year 1 . a. Prepare an amortization table for this instaliment note, similar to the one presented in Exh bit 4. Round the computation of the interest expense to the nearest whole dollar. Enter all amounts as positive numbers: Feedthack F Check My Wor of the note decreases each year as principal is repaid, which decreases the interest. After the final payment, the carrying amount on the note is zero, indicating that the note has been paid in ful. The cash payment is the same in each year. The interest and principal repayment, however, change cach year. This is because the carrying amount (bock value) of the note decreases each year as principal is repaid, which decreases the interest. After the final payment, the carrying amount on the note is zero, indicating that the note has been paid in full. Learning Objective 4 Exhibit 4 Alocation of Periodic Payments * Rounded ( $5.374 - 55.698). b. Journblize the entries for the issuance of the mok and wi. w.w. aumen ayments. If an amount box does not require an entry leave it blsik. Entries for Instaliment Note Transactions On January 1 of Year 1, Bryson Company obtained a $33,000, four-year, 8% instaliment note from Campbell Bank; The note requires annual parments of s9,963, beginning on December 31 of Year 1 . a. Prepare an amortization table for this instaliment note, similar to the one presented in Exh bit 4. Round the computation of the interest expense to the nearest whole dollar. Enter all amounts as positive numbers: Feedthack F Check My Wor of the note decreases each year as principal is repaid, which decreases the interest. After the final payment, the carrying amount on the note is zero, indicating that the note has been paid in ful. The cash payment is the same in each year. The interest and principal repayment, however, change cach year. This is because the carrying amount (bock value) of the note decreases each year as principal is repaid, which decreases the interest. After the final payment, the carrying amount on the note is zero, indicating that the note has been paid in full. Learning Objective 4 Exhibit 4 Alocation of Periodic Payments * Rounded ( $5.374 - 55.698). b. Journblize the entries for the issuance of the mok and wi. w.w. aumen ayments. If an amount box does not require an entry leave it blsik

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Text And Cases

Authors: W. Robert Knechel, Knechel

1st Edition

0538819340, 9780538819343

More Books

Students also viewed these Accounting questions