FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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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:

  1. 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.
  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 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 Credit

Jan 01, 2018 [ ] [ ] [ ]

 

  • Record the installment payment on December 31, 2018. (Note: Enter debits before credits.)

Date General Journal Debit Credit

Dec 31, 2018 [ ] [ ] [ ]

 

  • Record the installment payment on December 31, 2019. (Note: Enter debits before credits.)

Date General Journal Debit Credit

Dec 31, 2019 [ ] [ ] [ ]

 

  • Record the installment payment on December 31, 2020. (Note: Enter debits before credits.)

Date General Journal Debit Credit

Dec 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 Credit

March 31, 2018 [ ] [ ] [ ]

Required:
1. 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.
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 note
on March 31, 2018?
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Required 3
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. (Do not round intermediate
calculations. Round final answers to nearest whole dollar.)
Beginning
Notes Payable
Repaid
Principal on
Notes Payable
Interest
Ending
Notes Payable
Year
Expense
2018
2019
2020
Required 1
Required 2
expand button
Transcribed Image Text:Required: 1. 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. 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 note on March 31, 2018? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 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. (Do not round intermediate calculations. Round final answers to nearest whole dollar.) Beginning Notes Payable Repaid Principal on Notes Payable Interest Ending Notes Payable Year Expense 2018 2019 2020 Required 1 Required 2
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