Intermediate Accounting II Handout Homework Problem #3 On Notes Payable for Chapter 14 Spring 2020 Due in class on Friday, February 7, 2020 Prepare all journal entries for 2019 for the following chronological transactions, including any adjusting entries related to the note and interest ignore depreciation in this problem) at the end of the year on December 31, 2019. Assume straight line amortization Borrowed $300,000 at the bank on April 1, 2019, and signed a five year, 8% note at the bank. This note requires payments of interest annually on March 31. The entire principal is due al maturity. On September 1, 2019. purchased a piece of equipment and issued a two year non-interest bearing note for $90,000. The total $90,000 will be paid on April 30, 2021. Similar notes pay 8% interest. Purchased a piece of equipment for $68,150 on November 1, 2019, and signed a three year 6% note with the equipment dealer. This purchase requires MONTHLY payments of PRINCIPAL AND INTEREST at the beginning of each month for the following three years with interest compounded monthly Prepare an amortization table for the THREE years of the note in parte." The table should have separate columns for each of the thirty six payments, the beginning balance each period, the amount of the payment each period, the amount of interest each period, the amount of principal each period, and the ending balance each period. It would probably be a good idea to use a spreadsheet for this table. You can modify part of your computer problem #3 from the fall for this table. Please round all amounts in this table to the nearest DOLLAR III. Prepare a list of the current liabilities (including any contra current liabilities) AND THE AMOUNTS from the above transactions which should be reported on the balance sheet on December 31, 2019 Intermediate Accounting II Handout Homework Problem #3 On Notes Payable for Chapter 14 Spring 2020 Due in class on Friday, February 7, 2020 Prepare all journal entries for 2019 for the following chronological transactions, including any adjusting entries related to the note and interest ignore depreciation in this problem) at the end of the year on December 31, 2019. Assume straight line amortization Borrowed $300,000 at the bank on April 1, 2019, and signed a five year, 8% note at the bank. This note requires payments of interest annually on March 31. The entire principal is due al maturity. On September 1, 2019. purchased a piece of equipment and issued a two year non-interest bearing note for $90,000. The total $90,000 will be paid on April 30, 2021. Similar notes pay 8% interest. Purchased a piece of equipment for $68,150 on November 1, 2019, and signed a three year 6% note with the equipment dealer. This purchase requires MONTHLY payments of PRINCIPAL AND INTEREST at the beginning of each month for the following three years with interest compounded monthly Prepare an amortization table for the THREE years of the note in parte." The table should have separate columns for each of the thirty six payments, the beginning balance each period, the amount of the payment each period, the amount of interest each period, the amount of principal each period, and the ending balance each period. It would probably be a good idea to use a spreadsheet for this table. You can modify part of your computer problem #3 from the fall for this table. Please round all amounts in this table to the nearest DOLLAR III. Prepare a list of the current liabilities (including any contra current liabilities) AND THE AMOUNTS from the above transactions which should be reported on the balance sheet on December 31, 2019
