Question
FinanceCo lent $9.1 million to Corbin Construction on January 1, 2016, to construct a playground. Corbin signed a three-year, 4% installment note to be paid
| FinanceCo lent $9.1 million to Corbin Construction on January 1, 2016, to construct a playground. Corbin signed a three-year, 4% installment note to be paid in three equal payments at the end of each year. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) |
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| 1. | Prepare the journal entry for FinanceCos lending the funds on January 1, 2016. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.) |
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| 2. | Prepare an amortization schedule for the three-year term of the installment note. (Enter your answers in whole dollars.) |
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| 3. | Prepare the journal entry for the first installment payment on December 31, 2016. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.) |
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| 4. | Prepare the journal entry for the third installment payment on December 31, 2018. (If no journal entry is required for a transaction, select "No journal entry required" in the first account field. Enter your answers in whole dollars.) |
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Auditing Cases An Active Learning Approach
Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt
2nd Edition
0130674842, 978-0130674845
