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Problem One: On January 1, 2022, Company borrowed $250,000 for 5 years at 6% interest. The loan requires 5 annual payments of $59,349.10 (round computations
Problem One: On January 1, 2022, Company borrowed $250,000 for 5 years at 6% interest. The loan requires 5 annual payments of $59,349.10 (round computations to the nearest PENNY). 1. Complete the amortization schedule for this loan. Date Cash Payment Interest Expense Reduction in Carry Value Carry Value 1/1/22 12/31/22 12/31/23 12/31/24 12/31/25 12/31/26 2. Provide the journal entry to record loan at inception. Date A SE R 1/1/22 E NI CF Account DR CR 3. Date Provide the journal entry to record payment at 12/31/2022. L SE R E NI CF Account DR CR 12/31/22 ... Problem Two: On January 1, 2022, Corporation borrowed $15,000 for 5 years at 4% interest. The loan requires monthly payments of $276.25 (round computations to the nearest PENNY). 1. Complete the amortization schedule for this loan. Date Cash Payment Interest Expense Reduction to Carry Value Carry Value 1/1/22 2/1/22 3/1/22 4/1/22 2. Provide the journal entry to record loan at inception. Date SE R 1/1/22 E NI CF Account DR CR 3. Date Provide the journal entry to record payment at 2/1/22. A SE R E NI CF Account DR CR 2/1/22 ... Problem Three: On January 1, 2022, The Justice League issued $100,000, 9%, four-year bonds. Interest is paid semiannually on June 30 and December 31. The bonds were issued at $96,768 to yield an annual return of 10%. Required: 1) Show how Justice League calculated the $96,768 bond price (round each to the whole dollar). 2) Prepare an amortization schedule for the dates indicated using the effective interest rate method. Date Cash Payment Interest Expense Amortization Carry Value 1/1/2022 6/30/2022 12/31/2022 6/30/2023 3) Prepare the journal entries to record the issuance of the bond on January 1 and interest expense on June 30, 2022. Date L SE R E NI CF Account 1/1/22 DR CR Date L SE R E NI CF Account DR CR 6/30/22 3) What amount would the bonds be reported on the balance sheet at the end 2022
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