Murray Countertops borrowed $6500 at an annual rate of 8% to buy a used forklift. Murray amortized the loan in 4 annual paymentsPrepare an amortization schedule, using the amortization table, for the loan and use it to answer the questions.Click here to view page 1 of the Amortization Table.Click here to view page 2 of the Amortization Table.The amount of interest for the first payment period is $ 520(Round to the nearost cent as needed)The portion of the second payment that is applied to reduction of the principal is $

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Answered: Murray Countertops borrowed $6500 at an…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 1PA: On January 1, 2018, King Inc. borrowed $150,000 and signed a 5-year, note payable with a 10%...

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On January 1, 2018, King Inc. borrowed $150,000 and signed a 5-year, note payable with a 10% interest rate. Each annual payment is in the amount of $39,569 and payment is due each Dec. 31. What is the journal entry on Jan. 1 to record the cash received and on Dec. 31 to record the annual payment? (You will need to prepare the first row in the amortization table to determine the amounts.)
Falk Enterprises borrowed $8,500 at 6.25% compounded semiannually to purchase a new forklift. The loan agreement stipulates regular semiannual payments of $1,576 (except for a smaller final payment) be made over the next three years. Prepare the full amortization schedule for the loan. Calculate the total interest paid. (Round your Intermedlate calculations and final answers to 2 declmal places. Leeve no cells blank - be certaln to enter "0" wherever required.) Payment number Interest portion $ Principal portion $ Principal balance $ 8,500.00 Payment $ nts 1. eBook 4. Print Total: References Mc Graw Hill connect W
Halep Inc. borrowed $30,000 from Davis Bank and signed a 4-year note payable stating the interest rate was 4% compounded annually. Halep Inc. will make payments of $8,264.70 at the end of each year. Prepare an amortization table showing the principal and interest in each payment using the straight-line method.
1. On January 1, 2023, Malone purchased a building with a $200,000 10 year zero interest note. The normal borrowing rate for Malone is 10%. (you will need to use TVM and an amortization table) A. Compute the present value and prepare an amortization table. B. Record the necessary journal entries at 1/1/23, 12/31/23 and 12/31/24 using the effective interest method. C. Show the financial statement presentation of the note on the I/S and B/S at 12/31/23 and 12/31/24. 2. On October 1, 2023, Malone borrowed $50,000 by issuing a 11 month, 9% note. Interest will be paid at maturity. (you do NOT need to use TVM or an amortization table) A. Record the journal entries at 10/1/23, 12/31/23 and maturity. B. Show the financial statement presentation of the note on the I/S and B/S at 12/31/23 and 12/31/24. 3. During 2023 Jones sells products that carry a three-year manufacturer’s warranty. Jones sold 2,000 units this year for $2,000 each. For this year’s sales, Jones estimates the warranty costs to…
Murray Countertops borrowed $4000 at an annual rate of 8% to buy a used forklift. Murray amortized the loan in 4 annual payments. Prepare an amortization schedule, using your calculator, for the loan and use it to answer the questions.
the payment necessary to amortize a 4.8% loan of $81000 compounded annually with 7 annual payments is $13897. The total of the payments is $97279.77 with a total interest payment of $16279.77. The borrower made larger payments of $14000.00. Calculate (a) the time needed to pay off the loan, (b) the total amount of the payments, and (c) the amount of interest saved. Question content area bottom Part 1 a. The time needed to pay off the loan with payments of $14,000.00 is (Round up to the nearest year.) b. The total amount of the payments is $ (Round to the nearest cent as needed. c. The amount of interest saved is $ (Round to the nearest cent as needed.)
Stinson Corporation borrowed $85,000 at 8% compounded quarterly to buy a warehouse. Monthly payments of $1200 were made over the term of the loan. Construct a partial amortization schedule showing the last 2 payments. Determine the total amount paid to settle the loan. Show work, not just the answer. Determine the total principal repaid. Determine the total amount of interest paid. Show work, not just the answer.
Bob Jones bought a new log cabin for $68,000 at 11% interest for 30 years. Prepare an amortization schedule for the first three periods. (Use Table 15.1.) (Do not round intermediate calculations. Round your final answers to the nearest cent.) Payment Portion to- Balance of loan Number Principal outstanding Interest 1 3. acer 2.
The payment necessary to amortize a 5.7% loan of $97000 compounded annually, with 5 annual payments is $22,839.84. The total of the payments is $114,199.20 with a total interest payment of $17,199.20. The borrower made larger payments of $23,000.00. Calculate (a) the time needed to pay off the loan, (b) the total amount of the payments, and (c) the amount of interest saved. a. The time needed to pay off the loan with payments of $23,000.00 is _____ years. (Round up to the nearest year.) b. The total amount of the payments is $______ (Round to the nearest cent as needed.) c. The amount of interest saved is $______. (Round to the nearest cent as needed.)
2. Bob's Excavating purchased some equipment by issuing a three-year 6% note for $8,000 when the market rate for an obligation of this nature was 8%. The interest is payable annually. Actuarial information for three periods follows: 6% 8% 0.839619 0.793832 Present value of 1 2.673012 2.577097 Present value of annuity of 1 At the date of purchase, what amount should be debited to Equipment? a. $8,000.00 b. $7,587.66 c. $6,716.96 d. $6,350.66
Find the payment necessary to amortize a 5.5% loan of $7700 compounded semiannually, with 6 semiannual payments. Find (a) the payment necessary to amortize the loan and (b) the total payments and the total amount of interest paid based on the calculated semiannual payments. Then create an amortization table to find (C) the total payments and total amount of interest paid based upon the amortization table. a. The semiannual payment needed to amortize this loan is $ (Round to the nearest cent as needed.) b. The total amount of the payments is $ (Round to the nearest cent as needed.) The total amount of interest paid is $ (Round to the nearest cent as needed.) c. The total payment for this loan from the amortization table is $ %24 The total interest from the amortization table is $
Bob Jones bought a new log cabin for $63,000 at 10% interest for 30 years. Prepare an amortization schedule for the first three periods. (Use Table 15.1). (Do not round intermediate calculations. Round your final answer to the nearest cent.) Payment number: 1. Portion to-- interest: ?? principle:??, Balance of loan outstanding: ?? 2. Portion to-- interest: ?? principle:??, Balance of loan outstanding: ?? 3. Portion to-- interest: ?? principle:??, Balance of loan outstanding: ??

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