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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
ASSETS
110 Cash
111 Petty Cash
121 Accounts Receivable
122 Allowance for Doubtful Accounts
126 Interest Receivable
127 Notes Receivable
131 Merchandise Inventory
141 Office Supplies
142 Store Supplies
151 Prepaid Insurance
191 Land
192 Store Equipment
193 Accumulated Depreciation-Store Equipment
194 Office Equipment
195 Accumulated Depreciation-Office Equipment
LIABILITIES
210 Accounts Payable
221 Salaries Payable
231 Sales Tax Payable
232 Interest Payable
241 Notes Payable
251 Bonds Payable
252 Discount on Bonds Payable
253 Premium on Bonds Payable
EQUITY
311 Common Stock
312 Paid-In Capital in Excess of Par-Common Stock
315 Treasury Stock
321 Preferred Stock
322 Paid-In Capital in Excess of Par-Preferred Stock
331 Paid-In Capital from Sale of Treasury Stock
340 Retained Earnings
351 Cash Dividends
352 Stock Dividends
390 Income Summary
REVENUE
410 Sales
610 Interest Revenue
611 Gain on Redemption of Bonds
EXPENSES
510 Cost of Merchandise Sold
515 Credit Card Expense
516 Cash Short and Over
521 Sales Salaries Expense
522 Office Salaries Expense
531 Advertising Expense
532 Delivery Expense
533 Repairs Expense
534 Selling Expenses
535 Rent Expense
536 Insurance Expense
537 Office Supplies Expense
538 Store Supplies Expense
541 Bad Debt Expense
561 Depreciation Expense-Store Equipment
562 Depreciation Expense-Office Equipment
590 Miscellaneous Expense
710 Interest Expense
711 Loss on Redemption of Bonds

image text in transcribed

image text in transcribed

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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