Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

plz help Oriole Company receives a three-year, $11,000, zero-interest-bearing note, and the related present value with a market interest rate of 9% is $8,493.98. The

plz help image text in transcribed
image text in transcribed
Oriole Company receives a three-year, $11,000, zero-interest-bearing note, and the related present value with a market interest rate of 9% is $8,493.98. The total discount of $2,506.02 under the straight-line method is amortized over the three-year period in equal amounts each year. Therefore, the annual amortization is $2,506.023 or $835.34. Click here to view factor tables Prepare the entry to record the annual interest for years 1 and 2 under the straight-line method and the effective interest method. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. List all debit entries before credit entries. For calculation purposes, use 5 decimal places as displayed in the factor table provided and final answer to 2 decimal places, e.g. 15.,25.) Prepare the entry to record the annual interest for years 1 and 2 under the straight-line method and the effective interest method. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. List all debit entries before credit entries. For calculation purposes, use 5 decimal places as displayed in the factor table provided and final answer to 2 decimal places, e.8. 15.,25.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions