PART 1 Cucina Corp. signed a new installment note on January 1, 2018, and deposited the proceeds of $70,000 in its bank account. The note has a 3-year term, compounds 5 percent interest annually, and requires an annual installment payment on December 31. Cucina Corp. has a December 31 year-end and adjusts its accounts only at year-end. Required:Use an online application, such as the loan calculator with annual payments at mycalculators.com, to generate an amortization schedule. Enter that information into an amortization schedule with the following headings: Year, Beginning Notes Payable, Interest Expense, Repaid Principal on Notes Payable, and Ending Notes Payable.Prepare the journal entries on (a) January 1, 2018, and December 31 of (b) 2018, (c) 2019, and (d) 2020.If Cucina Corp.'s year-end were March 31, rather than December 31, prepare the adjusting journal entry would it make for this note on March 31, 2018? PART 1 REQUIRED 1 IN ATTACHED IMAGE Required 2 Prepare the journal entries on (a) January 1, 2018, and December 31 of (b) 2018, (c) 2019, and (d) 2020. (Do not round intermediate calculations. Round final answers to nearest whole dollar. If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Record the signing of the installment note on January 1, 2018. (Note: Enter debits before credits.)Date General Journal Debit CreditJan 01, 2018 [ ] [ ] [ ] Record the installment payment on December 31, 2018. (Note: Enter debits before credits.)Date General Journal Debit CreditDec 31, 2018 [ ] [ ] [ ] Record the installment payment on December 31, 2019. (Note: Enter debits before credits.)Date General Journal Debit CreditDec 31, 2019 [ ] [ ] [ ] Record the installment payment on December 31, 2020. (Note: Enter debits before credits.)Date General Journal Debit CreditDec 31, 2020 [ ] [ ] [ ] Required 3 If Cucina Corp.'s year-end were March 31, rather than December 31, prepare the adjusting journal entry would it make for this note on March 31, 2018? (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Record the adjusting journal entry for this note on March 31, 2018. (Note: Enter debits before credits.)Date General Journal Debit CreditMarch 31, 2018 [ ] [ ] [ ] Required:1. Use an online application, such as the loan calculator with annual payments at mycalculators.com, to generate an amortizationschedule. Enter that information into an amortization schedule with the following headings: Year, Beginning Notes Payable, InterestExpense, Repaid Principal on Notes Payable, and Ending Notes Payable.2. Prepare the journal entries on (a) January 1, 2018, and December 31 of (b) 2018, (c) 2019, and (d) 2020.3. If Cucina Corp's year-end were March 31, rather than December 31, prepare the adjusting journal entry would it make for this noteon March 31, 2018?Complete this question by entering your answers in the tabs below.Required 1Required 2Required 3Use an online application, such as the loan calculator with annual payments at mycalculators.com, to generate anamortization schedule. Enter that information into an amortization schedule with the following headings: Year, BeginningNotes Payable, Interest Expense, Repaid Principal on Notes Payable, and Ending Notes Payable. (Do not round intermediatecalculations. Round final answers to nearest whole dollar.)BeginningNotes PayableRepaidPrincipal onNotes PayableInterestEndingNotes PayableYearExpense201820192020Required 1Required 2

Interest Expense is a non operating expenditure incurred on the amount owed as fixed income…

Answered: Cucina Corp. signed a new installment…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

PART 1

Cucina Corp. signed a new installment note on January 1, 2018, and deposited the proceeds of $70,000 in its bank account. The note has a 3-year term, compounds 5 percent interest annually, and requires an annual installment payment on December 31. Cucina Corp. has a December 31 year-end and adjusts its accounts only at year-end.

Required:

Use an online application, such as the loan calculator with annual payments at mycalculators.com, to generate an amortization schedule. Enter that information into an amortization schedule with the following headings: Year, Beginning Notes Payable, Interest Expense, Repaid Principal on Notes Payable, and Ending Notes Payable.
Prepare the journal entries on (a) January 1, 2018, and December 31 of (b) 2018, (c) 2019, and (d) 2020.
If Cucina Corp.'s year-end were March 31, rather than December 31, prepare the adjusting journal entry would it make for this note on March 31, 2018?

PART 1 REQUIRED 1 IN ATTACHED IMAGE

Required 2

Prepare the journal entries on (a) January 1, 2018, and December 31 of (b) 2018, (c) 2019, and (d) 2020. (Do not round intermediate calculations. Round final answers to nearest whole dollar. If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

Record the signing of the installment note on January 1, 2018. (Note: Enter debits before credits.)