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Tony s favorite memories of his childhood were the times he spent with his dad at camp. Tony was daydreaming of those days a bit
Tonys favorite memories of his childhood were the times he spent with his dad at camp. Tony was daydreaming of those days a bit as he and Suzie jogged along a nature trail and came across a wonderful piece of property for sale. He turned to Suzie and said, Ive always wanted to start a camp where families could get away and spend some quality time together. If we just had the money, I know this would be the perfect place. On November Great Adventures purchased the land by issuing a $year installment note to the seller. Payments of $ are required at the end of each month over the life of the year loan. Each monthly payment of $ includes both interest expense and principal payments ie reduction of the loan amount Late that night, Tony exclaimed, We now have land for our new camp; this has to be the best news ever! Suzie said, Theres something else I need to tell you. Im expecting! Required: Complete the first three rows of an amortization schedule. Record the purchase of land with the issuance of a longterm note payable on November a Record the first two payments on November and December b Calculate the remaining balance of the note payable as of December The monthly payments in following year will reduce the notes balance by an additional $ Record the reclassification of this amount from Notes Payable longterm to Notes Payable current
Tonys favorite memories of his childhood were the times he spent with his dad at camp. Tony was daydreaming of those days a bit as he and Suzie jogged along a nature trail and came across a wonderful piece of property for sale. He turned to Suzie and said, Ive always wanted to start a camp where families could get away and spend some quality time together. If we just had the money, I know this would be the perfect place. On November Great Adventures purchased the land by issuing a $year installment note to the seller. Payments of $ are required at the end of each month over the life of the year loan. Each monthly payment of $ includes both interest expense and principal payments ie reduction of the loan amount
Late that night, Tony exclaimed, We now have land for our new camp; this has to be the best news ever! Suzie said, Theres something else I need to tell you. Im expecting!
Required:
Complete the first three rows of an amortization schedule.
Record the purchase of land with the issuance of a longterm note payable on November
a Record the first two payments on November and December
b Calculate the remaining balance of the note payable as of December
The monthly payments in following year will reduce the notes balance by an additional $ Record the reclassification of this amount from Notes Payable longterm to Notes Payable current
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