hal.0 On 1/1/19, Lantana Loan Co., a calendar-year company, accepts a 5%, $500,000 three-year loan that pays interest semi-annually on 6/30 and12/31 from Diamond Distributors, when the market rate of interest was 10%. In exchange for the note, Diamond agrees to make semi-annualInterest payments and repay the full $500,000 at maturity. Complete the amortization table for this note, then complete all journal entries for2019.Answer: Beginning note balance is calculated using Excel PV function with the following inputs:Amortization Table:Journal Entries:

The objective of the question is to create an amortization table for a three-year loan of $500,000…

Answered: On 1/1/19, Lantana Loan Co., a…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter19: Lease And Intermediate-term Financing

Section: Chapter Questions

Problem 16P

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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.)
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.
On January 1, 2019, Park Company accepted a 36,000, non-interest-bearing, 3-year note from a major customer in exchange for used equipment. The equipment had originally cost Park 200,000 and had a book value of 20,000 on the date of the sale. At the 12% imputed interest rate for this type of loan, the present value of the note is 25,500 on January 1, 2019. Park uses the effective interest rate. What is the carrying value of the note receivable on Parks December 31, 2019, balance sheet? a. 28,560 b. 29,000 c. 32,500 d. 36,000
On 1/1/19, Lantana Loan Co., a calendar-year company, accepts a 5%, $500,000 three-year loan that pays interest semi-annually on 6/30 and 12/31 from Diamond Distributors, when the market rate of interest was 10%. In exchange for the note, Diamond agrees to make semi-annual Interest payments and repay the full $500,000 at maturity. Complete the amortization table for this note, then complete all journal entries for 2019. Answer: Beginning note balance is calculated using Excel PV function with the following inputs: Amortization Table: Journal Entries:
On January 1st, year one, zero company obtained a 52,000, for year, 6.5% installment note from regional bank. The note requires annual payments of $15,179, beginning on December 31st, year one. The December 31st, Year too carrying amount in the amortization table for this installment and it will be equal to
On Jan. 1, 2021, Muta Co. received a P1,200,000, noninterest bearing note in exchange for land with carrying amount of P1,000,000. The note is due in three equal annual installments every Dec. 31. The effective interest rate is 15%. The present value of ordinary annuity of 1 at 15% for 3 periods is 2.2832Requirements: 1. Prepare the amortization table. 2. Determine the current and non-current portions of the note on December 31, 2021. 3. Provide all the necessary journal entries.
On January 1, 2021, Pindang Co. received a P1,000,000, noninterest bearing note inexchange land with carrying amount of P1,000,000. The note is due in four equal annual installments every December 31. The effective interest rate is 15%. The present value of ordinary annuity of 1 at 15% for 4 periods is 2.855Requirements:1. Prepare the amortization table.2. Determine the current and non-current portions of the note on December 31,2021.3. Provide all the necessary journal entries.
On 1/1/X1, Caldwell Corp. borrowed $450,000 by agreeing to a 9%, 9-year installment note with the bank. The note's proceeds will eventually be used to purchase a building. The journal entry to record the note is already shown in the journal below. The note will be paid back in nine equal annual installment payments of $ 75,059 on December 31 of each year beginning December 31, 20X1. Required: Using the above information, prepare the journal entries to record the first and second installment payments due on 12/31/X1 and 12/31/X2, respectively. Note: Round all calculations to the nearest whole dollar. Do not use currency symbols, commas or decimal points in your responses. Date Account Name Debit Credit 1/1/X1 Cash 450,000 Note Payable 450,000 12/31/X1 12/31/X2
On April 1, 2020, NYC Corporation secures a loan with a finance company, using its accounts receivable of $80,000 as collateral for the loan. NYC Corporation agrees to remit customer collections as payments on the loan. Loan proceeds are 85% of the receivables less a 2% finance charge on the balance of the assigned receivables. In addition, the finance company charges 10% interest on the unpaid loan balance, payable at the end of each month. Record the April 1, 2020, entry for NYC Corporation.
DAM Corporation, a lending institution, provided a loan to LAP company for $5,000,000 on Januray 1,2020. The loan has a term of 5 years with interest collectible annualy at 10%. Payment of principal will be equal installments at end of the yearDirect origination cost 20,445Origination fee 80,309Effective interest rate 10.50% Requirement:- Prepare the journal entry
On January 1, Year 1, Bryson Company obtained a $12,000, four-year, 9% installment note from Campbell Bank. The note requires annual payments of $3,704, beginning on December 31, Year 1. a. Prepare an amortization table for this installment note, similar to the one presented in Exhibit 4. Note: Round the computation of the interest expense to the nearest whole dollar. Enter all amounts as positive numbers. In Year 4, round the amount in the Decrease in Notes Payable column either up or down to ensure that the Carrying Amount zeroes out. Amortization of Installment Notes Year EndingDecember 31 January 1Carrying Amount Note Payment(Cash Paid) Interest Expense(9% of January 1Note CarryingAmount) Decrease inNotes Payable December 31Carrying Amount Year 1 $ $ $ $ $ Year 2 Year 3 Year 4 0 $ $ $
Sigma Bank granted a loan to a borrower in the amount of P 5,000,000 on January 1, 2021. The interest rate on the loan is 10% payable annually starting December 31, 2021. The loan matures in five years on December 31, 2025. Sigma Bank incurs P 39,400 of direct loan origination cost and P 10,000 of indirect loan origination cost. In addition, Sigma Bank charges the borrower an 8-point nonrefundable loan origination fee. PV of principal .5674; PV of interest 3.6048 Prepare an amortization table. 1. The carrying amount of the loan as of January 1, 2021 is A. P 4,639,400 B. P 5,000,000 C. P 4,649,400 D. P 5,039,400 2. The effective interest of the loan is A. 9.80 % B. 10% C. 12% D. 11.94% 3. What is the carrying amount of the loan as at December 31, 2021? A. P 5,000,000 B. P 4,696,128 C. P 4,759,663 D. P 4,639,400 3.The interest income to be recognized in 2021 A. P 493,861 B. P 500,000 C. P 555,138 D. P 556,728 4. What is the amount of discount amortization as at December 31, 2021?…

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