4.) Santos Company loans Sarasota Company $1,810,000 at 7% for 3 years on January 1, 2020. Ivanhoe intends to hold this loan to maturity and has the financial ability to do so. The fair value of the loan at the end of each reporting period is as follows. December 31, 2020   $1,859,000 December 31, 2021   1,831,000 December 31, 2022   1,810,000 Prepare the journal entry(ies) at December 31, 2020, and December 31, 2022, for Santos related to these bonds, assuming (a) it does not use the fair value option, and (b) it uses the fair value option. Interest is paid on January 1. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) No. Date Account Titles and Explanation Debit Credit (a)                                                                                                                                                             No. Date Account Titles and Explanation Debit Credit (b)                                                                                 (To record interest revenue)                             (To record fair value adjustment)                                                                                       (To record interest revenue)                             (To record fair value adjustment)

Carla Vista Electronics issues a $353,500, 3%, 15-year mortgage note on December 31, 2019. The proceeds from the note are to be used in financing a new research laboratory. The terms of the note provide for annual installment payments, exclusive of real estate taxes and insurance, of $41,441. Payments are due on December 31. Prepare an installment payments schedule for the first 4 years. (Round answers to 0 decimal places, e.g. 15,250.) Annual Interest Period   Cash Payment   Interest Expense   Reduction of Principal   Principal Balance Issue Date               $enter a dollar amount  1   $enter a dollar amount    $enter a dollar amount    $enter a dollar amount    enter a dollar amount 2   enter a dollar amount   enter a dollar amount   enter a dollar amount   enter a dollar amount 3   enter a dollar amount   enter a dollar amount   enter a dollar amount   enter a dollar amount 4   enter a dollar amount   enter a dollar amount…

Please give a detailed solution   On January 1, 2020, TPM Inc. acquires a piece of equipment for a list price of $300,000. It pays$20,000 immediately and writes a note for the remainder. Annual interest of 3% is due everyDecember 31st, and the principal of the note is payable in 6 years.TPM’s incremental borrowing rate is 6%, while the seller’s incremental borrowing rate is 7%.TPM is a public company. It depreciates its equipment using the diminishing balance method at15%. The equipment’s residual value is $40,000 at the end of its useful life.   1) Prepare all required journal entries for the years 2020 and 2021.2) Determine the Asset’s net book value on January 1, 2024.3) Determine the note payable carrying value on January 1, 2024

DBC Company has received a confirmation letter from the First National Bank of Miami (FNBM) about a line of credit for $12,000,000 on January 2, 2020. According to the terms of this short-term loan, DBC Company will be charged the following: A. ABC will be charged for 50 basis points interest (on an annual basis) for any unused amount of credit from the commencement of this agreement. B. Upon usage of any funds, the interest charge will be Prime rate plus 75 basis points. Prime rate at the commencement of this loan on January 2, 2020, was 5.25%. C. The following events took place in 2020: 1) On February 1, 2020; DBC Co., used $4,000,000 against its line of credit for its working capital purposes. 2) On May 1, 2020; DBC Co., used an additional $2,400,000 to purchase fixed assets. 3) On June 1, 2020, upon the meeting of F.O.M.C., the Fed announced its "Quantitative Easiness" policy and reduced the discount rate by 0.50 basis points. Immediately FNBM bank reflected the same reduction to…

Required information Use the following information for the Exercises below. (Algo) [The following information applies to the questions displayed below.] On January 1, 2021, Eagle Company borrows $31,000 cash by signing a four-year, 8% installment note. The note requires four equal payments of $9,360, consisting of accrued interest and principal on December 31 of each year from 2021 through 2024. Exercise 10-12 (Algo) Installment note amortization table LO C1 Prepare an amortization table for this installment note. (Round all amounts to the nearest whole dollar.) Payments Period Ending (A) Beginning (B) Debit Interest (C) Debit Notes Balance Expense Payable Date 2021 2022 2023 2024 Total $ 0

Assume that on September 1, 2022, Brannigan, which has a year-end of December 31, borrows $120,000,000 on a three-year, 7%note. The note requires annual interest payments and repayment ofthe principal plus the final year's interest at the end of the thirdyear.Even though no payment is due on December 31, interest must beaccrued for the period

Required information [The following information applies to the questions displayed below.] On January 1, 2024, Bloomfield Enterprises purchases a building for $327,000, paying $57,000 down and borrowing the remaining $270,000, signing a 7%, 10-year mortgage. Installment payments of $3,134.93 are due at the end of each month, with the first payment due on January 31, 2024. 3-a. Record the first monthly mortgage payment on January 31, 2024. 3-b. How much of the first payment goes to interest expense and how much goes to reducing the carrying value of the loan? Answer is not complete. Complete this question by entering your answers in the tabs below. Req 3a Req 3b Record the first monthly mortgage payment on January 31, 2024. (If no entry is required for select "No Journal Entry Required" in the first account field. Do not round intermediate calcul to 2 decimal places.) No Date General Journal 1 January 31, 2024 Interest Expense Notes Payable Cash Debit 1,559.93( 1,575.00

On November 30, 2023, Calla Resources Ltd. borrowed $180,000 from a bank by signing a four-year installment note bearing interest at 8%. The terms of the note require equal payments each year on November 30, starting November 30, 2024. Use TABLE 14A 2 (Use appropriate factor(s) from the tables provided.) Required: 1. Calculate the size of each installment payment. (Do not round intermediate calculations. Round the final answer to the nearest whole dollar.) Payment "T" 2. Complete an installment note amortization schedule for this note. (Do not round intermediate calculations. Round the final answers to the nearest whole dollar. Enter all the amounts as positive values.) Period Ending Beginning Balance Period Interest Expense Payments Debit Notes Payable Credit Cash Ending Balance

2. C-type Company receives $ 400,000 when it issues 6% mortgage note payable for 4 years to finance the construction of a building at December 31, 2020. The term provides for semiannual installment payment of 34,000 (including real estate tax and insurance $1900) on June 30 and December 31. Instructions: i. Prepare an installment payments schedule for the first 4 years. Prepare entries for the mortgage loan and first installment payment. Show the Balance sheet representation at December 31, 2020. ii. iii.

On January 1, 2021, Stoops Entertainment purchases a building for $610,000, paying $110,000 down and borrowing the remaining $500,000, signing a 9%, 15-year mortgage. Installment payments of $5,071.33 are due at the end of each month, with the first payment due on January 31, 2021. Problem 9-1B Part 4 4. Total payments over the 15 years are $912,839 ($5,071.33 × 180 monthly payments). How much of this is interest expense and how much is actual payment of the loan? Interest expense Actual payments on the loan