FinanceCo lent $9 3 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 ) Required 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 ) 2 Prepare an amortization schedule for the three year term of the installment note (Enter your answers in whole dollars ) 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 ) 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 )

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Aug 06, 2024

FinanceCo lent $9.3 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 $9.3 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.)

Required:

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.)

2.	Prepare an amortization schedule for the three-year term of the installment note. (Enter your answers in whole dollars.)

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.)

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.)