Don't give answer in image Davis has the following obligations atDecember 31, 2025: Note payabledue in monthly installments of$50,000, plus interest, throughNovember 30, 2026 Note payabledue in monthly installments of$30,000, plus interest, throughJanuary 31, 2027. Note payableoriginally due in quarterly installmentsof $60,000 plus interest throughMarch 31, 2026 but refinanced onDecember 31, 2025 for quarterlyinstallments of $80,000 plus interestthrough October 31, 2026. Notepayable issued on March 31, 2025 for$500,000 at 6% interest. Interest ispaid every month and principal is dueMarch 31, 2027. Note payable issuedon March 31, 2025 for $1,000,000 at6% interest. Interest and principal aredue March 31, 2026. Simple interest isused. Instructionsa. How much should Davis include incurrent liabilities at December 31,2025?b. How much should Davis include inlong-term liabilities at December 31,2025?

Current liabilities are the obligations which a company tends to settle within it's normal operating…

Answered: Davis has the following obligations at…

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter5: Introduction To Business Expenses

Section: Chapter Questions

Problem 61P

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The following amortization schedule indicates the interest and principal that Chip’s Cookie Corporation (CCC) must repay on an installment note established January 1, 2021. CCC has a December 31 year-end and makes the required annual payments on December 31. Year Beginning Notes Payable Interest Expense Repaid Principal on Notes Payable Ending Notes Payable 1 39,000 2,730 8,784 30,216 2 30,216 2,115 9,399 20,817 3 20,817 1,457 10,057 10,760 4 10,760 753 10,760 0 Total 7,055 39,000 Use the amortization schedule to determine (a) the amount of the (rounded) annual payment; (b) the amount of interest expense to report in the year ended December 31, 2021 (Year 1); (c) the note payable balance at January 1, 2024; and (d) the total interest and total principal paid over the note’s entire life. (Round your answers to the nearest whole dollar amount.)
Davis has the following obligations at December 31, 2025: Note payable due in monthly installments of $50,000, plus interest, through November 30, 2026 Note payable due in monthly installments of $30,000, plus interest, through January 31, 2027. Note payable originally due in quarterly installments of $60,000 plus interest through March 31, 2026 but refinanced on December 31, 2025 for quarterly installments of $80,000 plus interest through October 31, 2026. Note payable issued on March 31, 2025 for $500,000 at 6% interest. Interest is paid every month and principal is due March 31, 2027. Note payable issued on March 31, 2025 for $1,000,000 at 6% interest. Interest and principal are due March 31, 2026. Simple interest is used. How much should Davis include in current liabilities at December 31, 2025? How much should Davis include in long-term liabilities at December 31, 2025?
The following are the notes issued as of December 31,2020: a.) 10% , P 1,000,000 interest bearing note , issuance date: Jan.1,2019 ; due: December 31,2021 ( interest is payable annually) b.) 12%,P 2,500,000, interest bearing note , issuance date: Jan.1,2020 ; due: December 31,2024 (equal annual installments and interest are to be paid annually) c.) P 750,000 interest bearing note , issuance date: Jan.1,2020 ; due: December 31,2021 ( interest is payable annually) d.) 12%,P 1,500,000, interest bearing note , issuance date: Jan.1,2020 ; due: December 31,2024 (equal annual installments and interest are to be paid annually)From the above notes:- The note issued on a.) is extended for 2 more years. The company has the discretion to defer settlement of the obligation for more than 12 months.- The note issued on c.) is extended for 3 more years and this agreement was done on January 15,2021.How much should be presented as part of the current liabilities as of December 31,2020?
Davis has the following obligations at December 31, 2025:  Note payable due in monthly installments of $50,000, plus interest, through November 30, 2026  Note payable due in monthly installments of $30,000, plus interest, through January 31, 2027.  Note payable originally due in quarterly installments of $60,000 plus interest through March 31, 2026 but refinanced on December 31, 2025 for quarterly installments of $80,000 plus interest through October 31, 2026.  Note payable issued on March 31, 2025 for $500,000 at 6% interest. Interest is paid every month and principal is due March 31, 2027.  Note payable issued on March 31, 2025 for $1,000,000 at 6% interest. Interest and principal are due March 31, 2026. Simple interest is used. Instructions a. How much should Davis include in current liabilities at December 31, 2025? b. How much should Davis include in long-term liabilities at December 31, 2025?
The following amortization schedule indicates the interest and principal that Chip's Cookie Corporation (CCC) must repay on an installment note established January 1, 2021. CCC has a December 31 year-end and makes the required annual payments on December 31. Year 1 2 3 4 Total Beginning Notes Payable 52,000 40,629 28, 235 14,725 Repaid Principal Interest Expense on Notes Payable (a) Annual Payment (b) Interest Expense (c) Notes Payable (d-1) Total Interest (d-2) Total Principal 4,680 3,657 2,541 1,325 12, 203 11,371 12,394 13,510 14,725 52,000 Ending Notes Payable 40,629 28,235 14,725 0 Use the amortization schedule to determine (a) the amount of the (rounded) annual payment; (b) the amount of interest expense to report in the year ended December 31, 2021 (Year 1); (c) the note payable balance at January 1, 2024; and (d) the total interest and total principal paid over the note's entire life. (Round your answers to the nearest whole dollar amount.)
On November 1, 2019, Norwood borrows $410,000 cash from a bank by signing a five-year installment note bearing 9% interest. The note requires equal payments of $105,407 each year on October 31. Required:1. Complete an amortization table for this installment note.2. Prepare the journal entries in which Norwood records the following:(a) Accrued interest as of December 31, 2019 (the end of its annual reporting period).(b) The first annual payment on the note.
On Jan. 1, 2020, EC Company reported a note payable of P 1,200,000. The note is dated Oct. 1, 2019, bears interest at 12% and is payable in three equal annual payments of P 400,000. The first interest and principal payment was made on Oct. 1, 2020. What amount should be reported as interest expense for 2020? *a. P 30,000b. P 132,000c. P 165,000d. P 180,000
On January 1, 2019, James Co. received a 10%, five year note from a customer. Interest is paid every December 31. The note has a face value of P12,000,000. The effective rate on the date of the receipt of the note was 12% 1. Determine the initial amount of the note. 2. Prepare an amortization table to show the balance of the note at the end of each reporting period from 2019 to 2023. 3. Compute for the interest income recognized by James during each period from 2019 to 2023. On January 1, 2019, Frank Co. received a 14%, three-year note from a customer. The interest on the note is paid every June 30 and December 31. The note has a face value of P1,000,000. The effective rate applicable on the note is 12%. 1. Determine the initial amount of the note. 2. Prepare an amortization table to show the balance of the note at the end of each reporting period from 2019 to 2021. 3. Compute for the interest income recognized by Frank during each period from 2019 to 2021.
On June 1, 2020, Waterway Industries loaned Carla Vista $504000 on a 11% note, payable in five annual installments of $100800 beginning January 2, 2021. In connection with this loan, Carla Vista was required to deposit $5040 in a zero-interest-bearing escrow account. The amount held in escrow is to be returned to Carla Vista after all principal and interest payments have been made. Interest on the note is payable on the first day of each month beginning July 1, 2020. Carla Vista made timely payments through November 1, 2020. On January 2, 2021, Waterway received payment of the first principal installment plus all interest due. At December 31, 2020, Waterway's interest receivable on the loan to Carla Vista should be O $0. O $14280. O $9240. O $5040.
all principal and interest payments have been made. Problem 6-7 (AICPA Adapted) beginning January 1, 2022. Interest on the note is pavable on the first day of each month beginning July 1, 2021. Dale made timely payments through November 1, 2021. On January 1, 2022, Yola Company received payment of the first principal installment plus all interest due. On December 31, 2021, what amount should be reported- as accrued interest receivable? a. 5,000 10,000 с. d. 15,000 b.
On November 1, 2019, Norwood borrows $200,000 cash from a bank by signing a five-year installment note bearing 8% interest. The note requires equal payments of $50,091 each year on October 31. Required 1. Complete an amortization table for this installment note . 2. Prepare the journal entries in which Norwood records (a) accrued interest as of December 31, 2019 (the end of its annual reporting period), and (b) the first annual payment on the note.
the pita pit borrowed 197000 on november 1 2021 and signed a six month note bearing interest at 12%. principal and interest are payable in full at maturity on may 1 2022 in connection with this note. the pita pit should report interest expense at december 31 2021 in the amount of.

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