Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following amortization schedule indicates the interest and principal to be repaid on an installment note established January 1, 2021, for a company with a

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
The following amortization schedule indicates the interest and principal to be repaid on an installment note established January 1, 2021, for a company with a March 31 fiscal year-end. Beginning Notes Interest Repaid Principal Ending Notes Period Payable Expense on Notes Payable Payable 1/1-12/31, Year 1 $ 14,000 $ 560 $ 3,297 1/1-12/31, Year 2 $ 10,703 10,703 428 1/1-12/31, Year 3 3,429 7,274 7,274 291 3,566 3,708 1/1-12/31, Year 4 3,708 148 3,70R 0 Total 1,427 14.000 Required: d ces 1. Assuming the company makes the required annual payments on December 31, use the amortization schedule to determine (a) the amount of the (rounded) annual payment: (b) the amount of Interest Expense to report in the year ended March 31, 2021: (a) the amount of Interest Expense to report in the year ended March 31, 2022: (the Notes Payable balance at January 1, 2024; and (e) the total interest and total principal paid over the note's entire life 2. Assuming the company makes adjustments at the end of each fiscal year, prepare the journal entries required on (a) January 1, 2021, and (b) March 31, 2021 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Assuming the company makes the required annual payments on December 31, use the amortization schedule to determine (a) the amount of the (rounded) annual payment; (b) the amount of Interest Expense to report in the year ended March 31, 2021; (c) the amount of Interest Expense to report in the year ended March 31, 2022; (d) the Notes Payable balance at January 1, 2024; and (e) the total interest and total principal paid over the note's entire life. (Round your answers to the nearest whole dollar amount.) Show less (a) Annual Payment Complete this question by entering your answers in the tabs below. Required 1 Required 2 Assuming the company makes the required annual payments on December 31, use the amortization schedule to determine (a) the amount of the (rounded) annual payment; (b) the amount of Interest Expense to report in the year ended March 31, 2021; (c) the amount of Interest Expense to report in the year ended March 31, 2022; (d) the Notes Payable balance at January 1, 2024; and (e) the total interest and total principal paid over the note's entire life. (Round your answers to the nearest whole dollar amount.) Show less (a) Annual Payment (b) Interest Expense March 31, 2021 (C) Interest Expense March 31, 2022 (a) Notes Payable January 1, 2024 (e) Total Interest (e) Total Principal Required 1 Required 2 Assuming the company makes adjustments at the end of each fiscal year, prepare the journal entries required on (a) January 1, and (b) March 31, 2021. (If no entry is required for a transaction/event, select "No Journal Entry Required in the first accounti not round intermediate calculations.) View transaction list Journal entry worksheet 1 2 Record the entry on January 1, 2021. Note: Enter debits before credits Transaction General Journal Debit Credit Record entry Clear entry View general Journal Journal entry worksheet Record the entry on March 31, 2021. Note: Enter debits before credits. Transaction (b) General Journal Debit Credit Record entry Clear entry View general Journal

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Recommended Textbook for

Trusted Advisors Key Attributes Of Outstanding Internal Auditors

Authors: Richard F. Chambers, President And CEO Of The IIA

1st Edition

0894139819, 978-0894139819

More Books

Students also viewed these Accounting questions

Question

x Answered: 1 week ago

Answered: 1 week ago

Question

What is the relationship between humans?

Answered: 1 week ago

Question

What is the orientation toward time?

Answered: 1 week ago