Item4

4points

Return to question

Item 4

FinanceCo lent $9.5 million to Corbin Construction on January 1, 2024, to construct a playground. Corbin signed a three-year, 8% installment note to be paid in three equal payments at the end of each year.

Required:

1. Prepare the journal entry for FinanceCos lending the funds on January 1, 2024.
2. Prepare an amortization schedule for the three-year term of the installment note.
3. Prepare the journal entry for the first installment payment on December 31, 2024.
4. Prepare the journal entry for the third installment payment on December 31, 2026.

Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)

Complete this question by entering your answers in the tabs below. Prepare an amortization schedule for the three-year term of the installment note. Note: Round intermediate calculations and final answers to the nearest whole dollar. Complete this question by entering your answers in the tabs below. Prepare the journal entries for FinanceCo's lending the funds on January 1, 2024, the first installment payment on December 31, 2024 and the third installment payment on December 31, 2026. Note: 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