Installment Note. On January 1, 20x1, agree to buy equipment in exchange for six payments of $2,000 each, with the first one due today and the rest due at the end of each year (including 20x1). The stated interest rate is 12%. Calculate the recognition value of the equipment. Prepare the amortization table for the note. AT Payment 1/1/20x1 12/31/20x1 12/31/20x2 12/31/20x3 12/31/20x4 12/31/20x5 A2 Interest Reduction in Liability Prepare the journal entries to record the purchase and the next two payments. January 1, 20x1 December 31, 20x1 Balance December 31, 20x2

Installment Note. On January 1, 20x1, agree to buy equipment in exchange for six payments of $2,000 each, with the first one due today and the rest due at the end of each year (including 20x1). The stated interest rate is 12%. Calculate the recognition value of the equipment. Prepare the amortization table for the note. AT Payment 1/1/20x1 12/31/20x1 12/31/20x2 12/31/20x3 12/31/20x4 12/31/20x5 A2 Interest Reduction in Liability Prepare the journal entries to record the purchase and the next two payments. January 1, 20x1 December 31, 20x1 Balance December 31, 20x2

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications

Section: Chapter Questions

Problem 27E

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