Question#1

Question #2

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On January 1 of Year 1, Bryson Company obtained a $141,500, four-year, 8% installment note from Campbell Bank. The note requires annual payments of $42,722, beginning on December 31 of Year 1. Required: a. Prepare a table for this installment note, similar to the one presented in Exhibit 4. b. Journalize the entries for the issuance of the note and the four annual note payments. Refer to the Chart of Accounts for exact wording of account titles. c. Describe how the annual note payment would be reported on the Year 1 income statement Amortization of Installment Notes A B D E For the Year Ending Dec. 31 January 1 Carrying Amount 1 Note Payment Interest Expense Decrease in Notes Payable Dec. 31 Carrying Amount Year 1 $ $ $ $ Year 2 Year 3 Year 4 $ b. Journalize the entries for the issuance of the note and the four annual note payments. Enter transactions for Year 1 on page 10 of the journal, Year 2 on page 12, Year 3 on page 15, and Year 4 on page 17. Refer to the Chart of Accounts for exact wording of account titles. PAGE 10 On January 1 of Year 1, Bryson Company obtained a $141,500, four-year, 8% installment note from Campbell Bank. The note requires annual payments of $42,722, beginning on December 31 of Year 1. Required: a. Prepare a table for this installment note, similar to the one presented in Exhibit 4. b. Journalize the entries for the issuance of the note and the four annual note payments. Refer to the Chart of Accounts for exact wording of account titles. c. Describe how the annual note payment would be reported on the Year 1 income statement