Question
FinanceCo lent $8.2 million to Corbin Construction on January 1, 2024, to construct a playground. Corbin signed a three-year, 7% installment note to be paid
FinanceCo lent $8.2 million to Corbin Construction on January 1, 2024, to construct a playground. Corbin signed a three-year, 7% installment note to be paid in three equal payments at the end of each year.
Required:
- Prepare the journal entry for FinanceCos lending the funds on January 1, 2024.
- Prepare an amortization schedule for the three-year term of the installment note.
- Prepare the journal entry for the first installment payment on December 31, 2024.
- Prepare the journal entry for the third installment payment on December 31, 2026.
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Financial Accounting
Authors: Jan Williams, Susan Haka, Mark S Bettner, Joseph V Carcello
16th edition
1259692396, 77862384, 978-0077862381
