A company purchased two new delivery vans for a total of $250,000 on January 1, Year 1. The compang paid $40,000 cash and signed a $210,000, 3-year, 8% note for the remaining balance. The note is to be paid in three annual end-of-year payments of $81,487 each, with the first payment on December 31, Yea 1. Each payment includes interest on the unpaid balance plus principal. (1) Prepare a note amortization table using the format below: Period Debit Debit Notes Credit Ending Date Beginning Interest Balance Ending Balance Expense Payable Cash 12/31/Yr 1 12/31/Yr 2 12/31/Yr 3 (2) Prepare the journal entries to record the purchase of the vans on January 1, Year 1 and the second annual installment payment on December 31, Year 2.

A company purchased two new delivery vans for a total of $250,000 on January 1, Year 1. The compang paid $40,000 cash and signed a $210,000, 3-year, 8% note for the remaining balance. The note is to be paid in three annual end-of-year payments of $81,487 each, with the first payment on December 31, Yea 1. Each payment includes interest on the unpaid balance plus principal. (1) Prepare a note amortization table using the format below: Period Debit Debit Notes Credit Ending Date Beginning Interest Balance Ending Balance Expense Payable Cash 12/31/Yr 1 12/31/Yr 2 12/31/Yr 3 (2) Prepare the journal entries to record the purchase of the vans on January 1, Year 1 and the second annual installment payment on December 31, Year 2.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 7EA: Homeland Plus specializes in home goods and accessories. In order for the company to expand its...

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