provide money for a child's college education Computing the Amount of Periodic Payments Nathan Smith has just purchased a new car for $28,000. He paid $8,000 down and signed a note for the remaining $20,000. The interest rate on the note is 12% compounded monthly, or 1% per month. Required: 1. Compute the amount of Mr. Smith's monthly payment if he plans to pay off the $20,000 note in 30 monthly payments. Remember: The interest rate is 1% per month. 2. 3. Repeat part (1) assuming that Mr. Smith wishes to repay the note in 60 monthly payments. Assume that Mr. Smith decides to repay the note in 60 monthly payments. What is the balance remaining on the note immediately after he makes the 30th payment? Hint: Compute the present value of the remaining 30 payments. Accounting for Notes Payable Sweet's Candy Company needed cash for its current business operations. On January 1, 2017, the company borrowed $8,000 on a two-year, interest-bearing note from Peterson Bank at an annual interest rate of 10%. Interest is payable annually on January 1, and the note matures January 1, 2019. Sweet's Candy Company also borrowed $4,500 from Laurence National Bank on January 1, 2017, signing a three-year, 11% note due on January 1, 2020, with interest payable annually on January 1. Required: Prepare all journal entries relating to the two notes for 2017, 2018, 2019, and 2020. Assume that Sweet's Candy Company uses the calendar year for financial reporting. (Round all amounts to the nearest dollar.) Accounting for Notes Payable During 2017, Yuki Corporation had the following transactions relating to long-term liabilities: May 1 Purchased a machine costing $600,000 from Kuma Corporation. Issued a three-year, interest-bearing. note with interest payable on May 1 of each year. The note matures on May 1, 2020, and carries an interest rate of 7%. July 1 Required: 1. 2. Borrowed $25,000 from South-Central National Bank. The terms of the note require semiannual payments of interest on December 31 and June 30. The note matures in two years and carries an interest rate of 6%. Prepare the journal entries made on May 1 and July 1 to record the issuance of these two notes. Prepare all journal entries made on December 31, 2017. 3. Prepare all journal entries made during 2018. for a Mortgage ages with an insurance company to borrow $400,000