Question
Little Company borrowed $53,000 from Sockets on January 1, 2016, and signed a three-year, 6% installment note to be paid in three equal payments at
Little Company borrowed $53,000 from Sockets on January 1, 2016, and signed a three-year, 6% installment note to be paid in three equal payments at the end of each year. The present value of an ordinary annuity of $1 for 3 periods at 6% is 2.67301. (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.)
prepare the journal entry
1. Record for the sockets lending the fund on January 1, 2016.
| 3. | Prepare an amortization schedule for the three-year term of the installment note. (Leave no cell blank, enter zero where ever required. Round your answers to nearest whole dollar amount.) |
| 4. | Prepare the journal entry for Sockets first installment payment received on December 31, 2016. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) |
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