Question
Entry of Notes Payable in Installments On the first of January 2022, Empresas Buenapaga took out a loan of $100,000 in cash by signing an
Entry of Notes Payable in Installments
On the first of January 2022, Empresas Buenapaga took out a loan of $100,000 in cash by signing an installment note payable that requires four annual payments that include payment to the principal and interest at 7% payable every December 31, 2022 to 2025.
Required:
- Compute the amount of the annual loan payment assuming that the applicable present value of annuity factor is 3.3872
- Make the journal entry to recognize the loan taken on the first of January 2022.
- Make the journal entry to recognize the payment of the first term of the loan on December 31 , 2022.
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The Auditory Culture Reader
Authors: Michael Bull, Les Back
2nd Edition
1472569024, 978-1472569028
