On Jan 1, Luther Co issued at $1,000,000, 8%, 5 years installment note payable. The first note payment consist of $250,456 principal plus interest due on January 1 of the next year.  Show the account and amount and when it will appear on a classified balance sheet prepared on Dec. 31.                                         Partial Balance Sheet Current Liabilities   $   $ Long-term liabilities  $

Q: 1. Costco Wholesale Corporation borrows $640,000 on September 1, 2021. Costco signs a nine- month,…

A: Formula: Interest amount = Notes payable amount x Time period x Interest rate.

Q: Recording Entries for an Installment Note Payable On January 1 of Year 1, a borrower signed a…

A: Written agreements called "notes payable" state that one party will give the other party a specific…

Q: Entries for Installment Note Transactions On January 1, Year 1, Bryson Company obtained a $147,750,…

A: Given that: Instalment note value = $147750 Period = 4 years interest rate = 7%

Q: Entries for Installment Note Transactions On the first day of the fiscal year, Shiller Company…

A:

Q: Martinez Co. borrowed $71,059 on March 1 of the current year by signing a 60-day, 5%, interest-…

A: Interest = $71,059 x 5% x 60/360 = $592

Q: January 1, Year 1, Luzak Company issued a $12,000, 4-year, 9% installment note to McGee Bank. The…

A: Journal Entry:  It is the first and foremost procedure in an accounting cycle. The transactions are…

Q: Journalizing Installment Notes On the first day of the fiscal year, a company issues $52,000, 11%,…

A:

Q: On January 1, Year 1, Beatie Company borrowed $320,000 cash from Central Bank by issuing a…

A: NOTES PAYABLE Notes Payable is a long-term liabilities that indicate the money a company owes from…

Q: On January 1, 2021, Cullumber Corp. borrows $9,000 by signing a 3-year, 3% note payable. The note is…

A: Period Cash payment Interest expense at 3% Reduction of principal Principal balance Jan 1, 2021…

Q: Transactions: Apr. 30 Issued a $162,000, 30-day, 6% note dated April 30 to Misner Co. on account.…

A: It is a process Of recording transactions in a journal

Q: On January 1st, year one, zero company obtained a 52,000, for year, 6.5% installment note from…

A: Note payable is a form of liability for the business on which it has to make regular interest…

Q: On the first day of the fiscal year, a company issues $26,000, 12%, three-year installment notes…

A: Issue price of note is given at $26,000 and annual payment is $10,825 ($3,120 interest and $7,705…

Q: Keesha Company borrows $270,000 cash on November 1 of the current year by signing a 180-day, 11%,…

A: The note payable is reported as the liabilities in the balance sheet. The accrued interest is the…

Q: On January 1, Year 1, Luzak Company issued a $47,000, 4-year, 9% installment note to McGee Bank. The…

A: Journal Entry: It is the first and foremost procedure in an accounting cycle. The transactions are…

Q: Madison Company issued an interest-bearing note payable with a face value of $24,000 and a stated…

A: Note payable refers to the amount for which the individual or the company has written to pay the…

Q: On January 1, Year 1, Beatie Company borrowed $360,000 cash from Central Bank by issuing a…

A: Amortization schedule is the one which is prepared by the entity for the purpose of determining the…

Q: On November 1, 2018, A-1 Products borrowed $64,000 on a 5%, 5-year note with annual installment…

A: Loan Installment is that amount which is paid by the borrower to lender. It includes the interest…

Q: Require (a): Your business issued a 14%, $300,000, one-year, note payable on April 1, 20x1. Both the…

A: Solution Adjusting entry is a entry in a company's general ledger that occurs at the end of an…

Q: Recording Entries for Note Payable Lacey Corp. issued a three-year, $17,500 note with an 8% stated…

A: Introduction: A journal entry is a business transaction that is recorded in a company's accounting…

Q: Martinez Co. borrowed $79,200 on March 1 of the current year by signing a 60-day, 9%,…

A: The interest expense  is calculated as  follows  $79200 × 9% × 60/360   = $1188

Q: Recording and Assessing the Effects of Installment Loans On December 31, Dehning, Inc., borrowed…

A: Mortgage Notes Payable is defined as the promissory note that is secured by any asset, where the…

Q: the first day of the fiscal year, a company issues $45,000, 8%, six-year installment notes that have…

A: Journal Entries Record The All Business Transactions In Accounting Journal. It Is First Step Of…

Q: Keesha Co. borrows $100,000 cash on November 1 of the current year by signing a 150-day, 10%,…

A: The 150 days from November  1 will expire on March 31. Thetefore, Note will expire on March 31 next…

Q: Select all that apply A company issues $100,000 of 6%, 10-year bonds dated January 1, that pay…

A: Lets understand the basics.Journal entry is required to make to record event and transaction that…

Q: Welton Corporation's installment note that has original principal of $26,000, interest of 5%…

A: Journal entries are used to record business transactions. It is the first step where a transaction…

Q: On November 25 of the current year, a company borrows $8,000 cash by signing a 90-day, 5% note…

A: The accrued interest payable shall be recorded on December 31 in accordance with the accrual basis…

Q: On january 1 a company issued and sold a 400, 000 8 % 10 year bond payable and recieved proceeds of…

A: Bonds payable are one of the sources of finance and are shown as liability. If the interest rate is…

Q: Justin Company signed a $90,000, three-month, 9% note payable, on December 1. If the accounting…

A: Interest accrued on December 31= Face value of bonds x rate of interest x no. of month/12 = $90000 x…

Q: Prepare journal entry On 3/1/2020, $30,000 cash was borrowed on a two-year 8% note payable.…

A: Calculation of Interest to be accrued at  year end   =Principal x interest rate x time/12   = 30000…

Q: Journalize the following transactions (use a 360-day year in interest calculations):   Mar. 1…

A: Interest amount is calculated by considering the amount, rate of interest and the time period the…

Q: How do I find the carrying amout for each year?

A: Requirement a:   Prepare an amortization table.

Q: Entries for Installment Note Transactions On January 1, Year 1, Bryson Company obtained a $32,000,…

A: Journal entry is the process of recording the business transactions in the books of accounts for the…

Q: Entries for Installment Note Transactions On the first day of the fiscal year, Shiller Company…

A: Notes payable is a form of liability for the business, on which interest needs to be paid out on…

Q: Which journal entry below would be properly used to record an issuance of an installment note…

A: Notes payable are the negotiable instruments used for deferring payments. In this one-party agree to…

Q: Journalize the following, assuming a 360-day year is used for interest calculations: ​ Apr. 30…

A: Interest Expense = 150,000 x 6% x 30 / 360 = $750

Q: On January 1, Year 1, Platte Corporation issues a 5-year note payable for $5,000. The interest rate…

A: Note payable is a negotiable instrument issued by the payer to the payee to pay certain amount of…

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.