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On January 1, Year 1, Bryson Company obtained a $163,500, four-year, 12% installment note from Campbell Bank. The note requires annual payments of $53,830, beginning
On January 1, Year 1, Bryson Company obtained a $163,500, four-year, 12% installment note from Campbell Bank. The note requires annual payments of $53,830, beginning on December 31, Year 1. Required: a. Prepare an amortization table for this installment note, similar to the one presented in Exhibit 4. Round amounts to the nearest dollar. If an amount box requires a zero, enter "0". b. Journalize the entries for the issuance of the note and the four annual note payments. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. c. Describe how the annual note payment would be reported in the Year 1 income statement
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