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On November 1, 2020, your company borrowed $800,000 and issued a 5-year 9% note. The note pays principal and interest annually on October 31 each
On November 1, 2020, your company borrowed $800,000 and issued a 5-year 9% note. The note pays principal and interest annually on October 31 each year.
- Calculate the amount of the annual payments for this note. Please show the factors you entered into your calculator or spreadsheet to calculate the amount.
- Prepare the entries for this note from November 1, 2020 through December 31, 2021 (one year and two months), assuming your companys year ends on December 31 and your company does NOT make reversing entries on January 1.
- Based upon the entries in part b. indicate any current liabilities (and the balance in the current account) your company would report on the balance sheet on December 31, 2021 (the second year).
- Based upon the entries in part b. indicate any NONcurrent liabilities (and the balance in the account) your company would report on December 31, 2021 (the second year)
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Introduction to Managerial Accounting
Authors: Peter Brewer, Ray Garrison, Eric Noreen
7th edition
978-0078025792
