Question
On July 1, 2020, Oriole Ltd. borrowed $20,000 by signing a two-year, 4% note payable. The note is payable in two annual instalments of $10,604
On July 1, 2020, Oriole Ltd. borrowed $20,000 by signing a two-year, 4% note payable. The note is payable in two annual instalments of $10,604 on June 30. The company records adjusting journal entries annually at year end on December 31.
Prepare an instalment payment schedule for the term of the note. (Round answers to the nearest whole dollar, e.g. 5,255.)
Annual Interest Period | Cash Payment | Interest Expense | Reduction of Principal | Principal Balance | |||||
---|---|---|---|---|---|---|---|---|---|
July 1, 2020 | $enter a dollar amount | ||||||||
June 30, 2021 | $enter a dollar amount | $enter a dollar amount | $enter a dollar amount | enter a dollar amount | |||||
June 30, 2022 | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount |
List of Accounts
Record (1) the receipt of the $20,000 cash and the issue of the note on July 1, 2020; (2) the accrual of interest on December 31, 2020; (3) the first payment on June 30, 2021; and (4) the accrual of interest on December 31, 2021. (Round answers to the nearest whole dollar, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.)
Date | Account Titles and Explanation | Debit | Credit | |
---|---|---|---|---|
2020 | ||||
choose a transaction date June 30July 1Dec. 31 | enter an account title | enter a debit amount | enter a credit amount | |
enter an account title | enter a debit amount | enter a credit amount | ||
choose a transaction date June 30July 1Dec. 31 | enter an account title | enter a debit amount | enter a credit amount | |
enter an account title | enter a debit amount | enter a credit amount | ||
2021 | ||||
| enter an account title | enter a debit amount | enter a credit amount | |
enter an account title | enter a debit amount | enter a credit amount | ||
enter an account title | enter a debit amount | enter a credit amount | ||
enter an account title | enter a debit amount | enter a credit amount | ||
choose a transaction date June 30July 1Dec. 31 | enter an account title | enter a debit amount | enter a credit amount | |
enter an account title | enter a debit amount | enter a credit amount |
List of Accounts
What amounts would Oriole report as current and non-current in the liabilities section of its statement of financial position on December 31, 2020? (Round answers to the nearest whole dollar, e.g. 5,255.)
OrioleLtd. Statement of Financial Position (Partial) choose the accounting period For the Year Ended December 31, 2020For the Month Ended December 31, 2020December 31, 2020 | ||||
---|---|---|---|---|
select an opening name for subsection one Current LiabilitiesNon-Current LiabilitiesTotal Non-Current LiabilitiesTotal Current Liabilities | ||||
enter an account title | $ | enter a dollar amount | ||
enter an account title | enter a dollar amount | |||
select an opening name for subsection two Total Current LiabilitiesCurrent LiabilitiesTotal Non-Current LiabilitiesNon-Current Liabilities | ||||
enter an account title | enter a dollar amount |
List of Accounts
What amount would Oriole report as current and non-current in the liabilities section of its statement of financial position on December 31, 2021? (Round answers to the nearest whole dollar, e.g. 5,255.)
OrioleLtd. Statement of Financial Position (Partial) choose the accounting period For the Year Ended December 31, 2021December 31, 2021For the Month Ended December 31, 2021 | ||||
---|---|---|---|---|
select an opening subsection name Total Non-Current LiabilitiesTotal Current LiabilitiesCurrent LiabilitiesNon-Current Liabilities | ||||
enter an account title | $ | enter a dollar amount | ||
enter an account title | enter a dollar amount |
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