Lab 4 - Ch 15 F2021

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On January 1, 2021, Cullumber Corp. borrows $ 22,200 by signing a 3-year, 9% note payable. The note is repayable in three annual fixed principal payments on December 31 of each year.

Calculate the annual principal payment.

Annual principal payment$ enter the Annual principal payment in dollars

eTextbook and Media

List of Accounts

Prepare an instalment payment schedule for the note.

Period Cash payment Interest Expense Reduction of Principal Principal Balance

Jan. 1, 2021

$ enter a dollar amount $ enter a dollar amount $ enter a dollar amount $ enter a dollar amount

Dec. 31, 2021

enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount

Dec. 31, 2022

enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount

Dec. 31, 2023

enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount

eTextbook and Media

List of Accounts

Prepare journal entries to record the note and the first instalment payment. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date

Account Titles and Explanation

Debit

Credit

Jan. 1, 2021

enter an account title to record issuance of note on January 1

enter a debit amount

enter a credit amount

enter an account title to record issuance of note on January 1

enter a debit amount

enter a credit amount

(To record issuance of note.)

Dec. 31, 2021

enter an account title to record payment on note on December 31

enter a debit amount

enter a credit amount

enter an account title to record payment on note on December 31

enter a debit amount

enter a credit amount

enter an account title to record payment on note on December 31

enter a debit amountenter a credit amount(To record payment on note.)

eTextbook and Media

List of Accounts

What amounts would be reported as current and non-current in the liabilities section of Cullumber's balance sheet at December 31, 2021?

Current liability

$ enter a dollar amount

Non-current liability

$ enter a dollar amount