Comly Communications issues a $600,000, 10%, 20-year mortgage note on January 1. The terms provide for annual installment payments of $69,932, exclusive of real estate taxes and insurance. After the first installment payment, the principal balance is $590,068. $530,068 $565,034. $600,000

Q: Borrowed $975,000 from Nelson Bank. The 15-year, 7% note requires payments due annually, on March 1.…

A: Journal entries are passed to record every transaction incurred by a company in the books of…

Q: Cucina Corporation signed a new installment note on January 1, 2021, and deposited the proceeds of…

A: Step 1:Step 2:Step 3:Step 4:

Q: 1. Costco Wholesale Corporation borrows $640,000 on September 1, 2021. Costco signs a nine- month,…

A: Formula: Interest amount = Notes payable amount x Time period x Interest rate.

Q: Analyzing and Reporting Financial Statement Effects of Mortgages On January 1, Patterson Inc.…

A: Financial statements are formal records that present the financial activities and position of a…

Q: DAM Corporation, a lending institution, provided a loan to LAP company for $5,000,000 on Januray…

A: Loan origination fees include but are not limited to fees charged to the borrow as prepaid…

Q: Entries for Installment Note Transactions On January 1, Year 1, Bryson Company obtained a $147,750,…

A: Given that: Instalment note value = $147750 Period = 4 years interest rate = 7%

Q: Campus Flights takes out a bank loan in the amount of $218,899 on March 1. The terms of the loan…

A: A loan is the transfer of funds from one party to another with the promise of repayment. In exchange…

Q: On January 1, Year 1, Mahoney Company borrowed $165,000 cash from Sun Bank by issuing a 5-year, 8%…

A: Loan means the amount taken from another person to be repaid back with interest. Equal annual…

Q: Campus Flights takes out a bank loan in the amount of $200,500 on March 1. The terms of the loan…

A: To calculate the interest recognized in year 1, we need to multiply the loan amount by the interest…

Q: unland Resort Corp. issued a 20-year, 6%, $274,000 mortgage note payable to finance the construction…

A: The practice of capturing commercial transactions for the first time in the books of accounts is…

Q: On 1/1/X1, Caldwell Corp. borrowed $450,000 by agreeing to a 9%, 9-year installment note with the…

A: Note means an instrument acknowledging as debt due from one party to another party. Interest bearing…

Q: Fox Co. purchases land on January 1 of Year 1 and issues a 3-year, $70,000 zero-interest-bearing…

A: The zero interest-bearing notes are the ones which does not carry an interest rate which means they…

Q: On January 1, 2021, Corvallis Carnivals borrows $17,000 to purchase a delivery truck by agreeing to…

A:

Q: 4. Wigan Cars issues an $17,00,000, 9%, 15-year mortgage note on December 31, 2010, to help finance…

A:

Q: Campus Flights takes out a bank loan in the amount of $210,000 on March 1. The terms of the loan…

A: Loan is defined as the amount collected on pre-decided terms and conditions and on the obligation…

Q: The December 31, Year 2 carrying amount in the amortization table for this installment note will be…

A: The person who promised to pay the specified amount by signing a note is treated as notes payable as…

Q: How much is the impairment loss on the receivables?

A: The impairment loss on the receivables is the loss occurred whenever there is a greater value of…

Q: On January 1, 2021, Cullumber Corp. borrows $9,000 by signing a 3-year, 3% note payable. The note is…

A: Period Cash payment Interest expense at 3% Reduction of principal Principal balance Jan 1, 2021…

Q: Alaska Inc. borrowed $16,000 by signing a one-year note payable on November 1, 2020. The note bears…

A: Formula: Interest expense = Notes amount x Interest rate x Time period

Q: On January 1, Year 1, Beatie Company borrowed $400,000 cash from Central Bank by issuing a…

A: Amortization schedule of interest and principal payment for 5 periods is as under:

Q: Hen it issues a $282,000, 10% mortgage note payable to finance the construction of a building at…

A: In the first transaction on December 31, 2022, we're recording the initiation of the mortgage loan.…

Q: Dold Acrobats lent $16,529 to Donaldson, Inc., accepting Donaldson’s 2-year, $20,000,…

A: Note receivable: Note receivable refers to a written promise for the amounts to be received within a…

Q: On January 1st, year one, zero company obtained a 52,000, for year, 6.5% installment note from…

A: Note payable is a form of liability for the business on which it has to make regular interest…

Q: Campus Flights takes out a bank loan in the amount of $145,847 on March 1. The terms of the loan…

A: 1. Principal Amount: The initial amount of the loan is $145,847.2. Annual Interest Rate: The…

Q: Cucina Corporation signed a new installment note on January 1, 2021, and deposited the proceeds of…

A: Beginning Notes Payable Interest Expense Repaid Principal on Notes Payable Ending Notes Payable…

Q: On November 15, 2018, Jenco signed a four-year, $100,000 note payable to Vicksburg State Bank for…

A: The installment payable for the installment is computed by dividing the value of the note by the…

Q: c. How will the annual note payment be reported in the Year 1 income statement? of $ would be…

A: Interest expenses of $5720 will be in Income Statement in Year 1.

Q: On January 12021Gundy Enterprises purchases an office building for $184,000, paying $44.000 down and…

A: A mortgage is a loan from the bank or the financial institution that helps the business to purchase…

Q: On January 1, Yeargan Company obtained a $125,000, seven-year 5% installment note from Farmers Bank.…

A: Note​ payable: Note​ payable is an instrument through which borrower obtains money from a person…

Q: ABC Company issued ten-year P1,000,000 interest bearing Promissory Note at the beginning of the…

A: Note payable is a liability on which interest is payable according to aggreement. It can be current…

Q: Oriole Company issued a $3,700,000, 10%, 10-year mortgage note payable to finance the construction…

A: Step 1:The required journal entries for the given transactions related to mortgage note payable are…

Q: On December 31, Caper, Inc., issued $500,000 of 8%, 9-year bonds for $440,000, yielding an effective…

A: The bond discount is amortized and the carrying value is increased over the bond tenure. The amount…

Q: Amenadiel Co. has an 8% note receivable dated June 30, year 1, in the original amount of 150,000.…

A: A written promise to receive a sum of money at the pre determined future date is referred to as note…

Q: Required: 1. Compute the amount of each of the four equal payments. (Note: Use Table B.3 in Appendix…

A: Notes payable is an amount that is issued by a company in exchange of an amount borrowed. It is…

Q: Campus Flights takes out a bank loan in the amount of $210,000 on March 1. The terms of the loan…

A: Interest recognized as of December 31 = Loan amount * rate * Fraction of the year

Q: Oriole Company borrowed $790,000 on December 31, 2019, by issuing an $790,000, 9% mortgage note…

A: Lets understand the basics. When amount is borrowed against the notes then it needs to repaid with…

Q: All In Digital Bank granted a loan to a client on January 1, 2022. The interest on the loan is 10%…

A: Initial measurement amount=1000000-55200+30770 =975570

Q: Recording Entries for an Installment Note Payable On January 1 of Year 1, a borrower signed a…

A: Written agreements called "notes payable" state that one party will give the other party a specific…

Q: On the first day of the fiscal year, Shiller Company borrowed $22,000 by giving a five-year, 12%…

A: Notes payable: Notes payable can be defined as an instrument where a borrower promises to repay the…

Q: On January 1, 2018, Allgood Company purchased equipment and signed a six =year mortgage note for…

A: For calculating interest expense, we will need to make amortization schedule of loan over a period…

Q: How do I find the carrying amout for each year?

A: Requirement a:   Prepare an amortization table.

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.