On January 1, McNeil Company borrows $100,000 cash by signing a four-year, 9% installment note. The note requires four equal payments consisting of accrued interest and principal on December 31 of each for the next four years. Required: 1. Compute the amount of each of the four equal payments. (Note: Use Table B.3 in Appendix B.) 2. Prepare an amortization table for this installment note. 3. Prepare the journal entries in which McNeil Company records the following: (a) McNeil Company borrows $100,000 cash by signing a four-year, 9% installment note. (b) Record the first payment on December 31, Year 1. (c) Record the last payment on December 31, Year 4.

Table B.3#Present Value of an Annuity of 1 p= [1 - 1/(1 + i)"Vi Rate 7% Periods 2% 3% 4% 5% 6% 8% 9% 10% Periods 1% 0.9901 1.9704 15% 0.8696 1 0.9804 0.9709 0.9615 0.9524 0.9091 0.9434 1.8334 0.9346 1.8080 0.9259 1.7833 UIT 12% 0.8929 1.6901 2.4018 2 1 2 1.9416 1.9135 1.8594 0.9174 1.7591 2.5313 1.8861 2.7751 1.7355 1.6257 3 2.8839 2.8286 2.6243 2.5771 3 2.9410 3.9020 2.7232 3.5460 2.4869 3.1699 4 3.6299 2.6730 3.4651 4.2124 3.3121 3.0373 4 3.8077 4.7135 5.6014 3.3872 4.1002 3.2397 3.8897 2.2832 2.8550 3.3522 3.7845 5 4.4518 3.9927 4.8534 5.7955 5 4.3295 5.0757 6 4.4859 4.9173 5.5824 4.7665 5.3893 6 3.7908 4.3553 4.8684 4.6229 5.2064 3.6048 4.1114 4.5638 7 6.7282 4.1604 7 3.7171 4.5797 5.4172 6.2303 7.0197 7.7861 8.5302 9.2526 5.7864 6.4632 5.0330 5.5348 8 5.9713 5.3349 8 6.4720 7.3255 8.1622 8.9826 9.7868 5.2421 6.0021 6.7327 7.4353 8.1109 8.7605 9 7.1078 6.5152 5.9952 5.7590 9 6.2098 6.8017 7.3601 7.8869 4.9676 5.3282 5.6502 5.9377 4.4873 4.7716 5.0188 5.2337 10 6.1446 10 5.7466 6.2469 6.7101 7.1390 7.5361 7.9038 7.7217 8.3064 8.8633 7.0236 7.4987 6.4177 6.8052 11 6.4951 11 12 10.5753 8.3838 7.9427 7.1607 5.4206 6.1944 6.4235 12 13 13 8.8527 7.4869 6.8137 7.1034 7.3667 5.5831 14 9.3936 9.8986 10.3797 7.6517 8.5660 9.4713 10.3676 11.2551 12.1337 13.0037 13.8651 14.7179 15.5623 16.3983 17.2260 18.0456 22.0232 8.3577 8.7455 9.1079 14 9.2950 9.7122 8.2442 8.5595 7.7862 8.0607 6.6282 6.8109 5.7245 5.8474 15 15 11.3484 12.1062 12.8493 13.5777 14.2919 14.9920 15.6785 7.6061 7.8237 16 9.4466 8.8514 8.3126 16 10.1059 10.4773 6.9740 7.1196 5.9542 6.0472 17 9.7632 9.1216 8.5436 17 9.9540 9.3851 10.6350 9.9856 11.2961 10.5631 11.9379 11.1184 12.5611 11.6523 13.1661 12.1657 13.7535 12.6593 14.3238 13.1339 14.8775 13.5903 17.4131 15.6221 19.6004 17.2920 21.4872 18.6646 23.1148 19.7928 8.0216 8.2014 18 10.8276 10.0591 9.3719 8.7556 6.1280 18 7.2497 7.3658 19 11.1581 9.6036 8.3649 19 10.8378 11.2741 11.6896 12.0853 12.4622 14.0939 15.3725 16.3742 17.1591 8.9501 9.1285 20 6.1982 6.2593 16.3514 10.3356 10.5940 11.6536 9.8181 8.5136 11.4699 12.7834 20 7.4694 7.8431 25 10.6748 9.0770 6.4641 25 30 6.5660 30 25.8077 29.4086 19.5235 22.3965 24.9986 27.3555 13.7648 14.4982 12.4090 12.9477 13.3317 35 9.8226 10.2737 10.5668 10.7574 11.2578 11.6546 11.9246 9.4269 9.6442 9.7791 8.0552 8.1755 8.2438 6.6166 35 40 32.8347 15.0463 6.6418 40 #Used to calculate the present value of a series of equal payments made at the end of each period. For example: What is the present value of $2,000 per year for 10 years assuming an annual interest rate of 9%? For (n = 10, i = 9%), the PV factor is 6.4177. $2,000 per year for 10 years is the equivalent of $12,835 today ($2,000 x 6.4177). On January 1, McNeil Company borrows $100,000 cash by signing a four-year, 9% installment note. The note requires four equal payments consisting of accrued interest and principal on December 31 of each for the next four years. Required: 1. Compute the amount of each of the four equal payments. (Note: Use Table B.3 in Appendix B.) 2. Prepare an amortization table for this installment note. 3. Prepare the journal entries in which McNeil Company records the following: (a) McNeil Company borrows $100,000 cash by signing a four-year, 9% installment note. (b) Record the first payment on December 31, Year 1. (c) Record the last payment on December 31, Year 4. Complete this question by entering your answers in the tabs below. Req 1 Reg 2 Req 3A to 30 Prepare the journal entries in which McNeil Company records the following: (a) McNeil Company borrows $100,000 cash by signing a four-year, 9% installment note. (b) Record the first payment on December 31, Year 1. (c) Record the last payment on December 31, Year 4. On January 1, McNeil Company borrows $100,000 cash by signing a four-year, 9% installment note. The note requires four equal payments consisting of accrued interest and principal on December 31 of each for the next four years. Required: 1. Compute the amount of each of the four equal payments. (Note: Use Table B.3 in Appendix B.) 2. Prepare an amortization table for this installment note. 3. Prepare the journal entries in which McNeil Company records the following: (a) McNeil Company borrows $100,000 cash by signing a four-year, 9% installment note. (b) Record the first payment on December 31, Year 1. (c) Record the last payment on December 31, Year 4. Complete this question by entering your answers in the tabs below. Req 1 Reg 2 Req 3A to 30 Compute the amount of each of the four equal payments. (Round the PV factor to four decimal places. Round your answer to the nearest whole dollar.) Amount of each payment Req? Req 2 On January 1, McNeil Company borrows $100,000 cash by signing a four-year, 9% installment note. The note requires four equal payments consisting of accrued interest and principal on December 31 of each for the next four years. Required: 1. Compute the amount of each of the four equal payments. (Note: Use Table B.3 in Appendix B.) 2. Prepare an amortization table for this installment note. 3. Prepare the journal entries in which McNeil Company records the following: (a) McNeil Company borrows $100,000 cash by signing a four-year, 9% installment note. (b) Record the first payment on December 31, Year 1. (c) Record the last payment on December 31, Year 4. Complete this question by entering your answers in the tabs below. Req 1 Reg 2 Req 3A to 3C Prepare an amortization table for this installment note. (Round your intermediate calculations to the nearest dollar amount. Round to the nearest whole dollars.) Period Ending Date Beginning Balance Debit Interest Expense Debit Notes Payable Credit Cash Ending Balance Year 1 Year 2 Year 3 Year 4 Total $ 0 $ 0 $