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On January 1, 2016, Bryson Company obtained a $150,000, four-year, 9% installment note from Campbell Bank. The note requires annual payments of $46,300, beginning on
On January 1, 2016, Bryson Company obtained a $150,000, four-year, 9% installment note from Campbell Bank. The note requires annual payments of $46,300, beginning on December 31, 2016.
Required:
A. | Prepare an amortization table for this installment note, similar to the one presented in Exhibit 4 . |
B. | Journalize the entries for the issuance of the note and the four annual note payments. Be sure to include the year in the date for the entries. Refer to the Chart of Accounts for exact wording of account titles. |
C. | Describe how the annual note payment would be reported in the 2016 income statement. |
CHART OF ACCOUNTS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Bryson Company | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
General Ledger | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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PAGE 10 JOURNAL Score: 170/174 DATE DESCRIPTION POST. REF DEBIT CREDIT 1Jan.1, 2016 Cash 150,000.00 Notes Payable 150,000.00 Dec. 31, 2016 Notes Payable 32,800.00 Interest Expense 13,500.00 Cash 46,300.00 6 Dec. 31, 2017 Notes Payable 35,752.00 Interest Expense 10,548.00 Cash Notes Payable Interest Expense 46,300.00 Dec. 31, 2018 38,970.00 10 7,330.00 Cash 46,300.00 12 Dec. 31,2019 Notes Payable 42,477.00 13 Interest Expense 3,823.00 14 Cash 46,300.00
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