(The following information applies to the questions displayed below.]On January 1, 2021, Eagle Company borrows $21,000 cash by signing a four-year, 5% installment note. The note requiresfour equal payments of $5,922, consisting of accrued interest and principal on December 31 of each year from 2021through 2024.rt 2 of 2Exercise 10-13 (Algo) Installment note entries LO C128Prepare the journal entries for Eagle to record the note's issuance and each of the four payments. (Round your intermediatelntscalculations and final answers to the nearest dollar amount.)8 ot56:49View transaction listeBookJournal entry worksheet24Eagle borrows $21,000 cash by signing a four-year, 5% installment note.Record the issuance of the note on January 1, 2021.Note: Enter debits before credits.McGrawHill< Prev5of 7Next >Type here to search69°F Cloudy404.6.TPID.MI

A journal entry is a form of accounting entry that is used to report a business transaction in a…

Answered: On January 1, 2021, Eagle Company…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter9: Long-term Liabilities

Section: Chapter Questions

Problem 94PSA

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Entries for installment note transactions On January 1, 20Y2, Hebron Company issued a 175,000, five-year, 8% installment note to Ventsam Bank. The note requires annual payments of 43,830, beginning on December 31, 20Y2. Journalize the entries to record the following:
Notes Payable and Effective Interest On November 1,2019, Edwin Inc. borrowed cash and signed a 60,000, 1-year note payable. Required: Compute the following items assuming (a) an interest-bearing note at 12%, (b) a non-interest-bearing note discounted at 12%: cash received effective interest rate interest expense for 2019 Prepare the journal entries for Edwin under each case for 2019 and 2020. Next Level Why is the effective rate higher for the non-interest-bearing note?
Comprehensive Notes Receivable On January 1, 2019, Seaver Company sold land with a book value of 23,000 to Bench Company. Bench paid 15,000 down and signed a 15,000 non-interest-bearing note, payable in two 7,500 annual installments on December 31, 2019, and 2020. Neither the fair value of the land nor of the note is determinable. Benchs incremental borrowing rate is 12%. Later in the year, on July 1, 2019, Seaver sold a building to Hane Company, accepting a 2-year, 100,000 non-interest-bearing note due July 1, 2021. The fair value of the building was 82,644.00 on the date of the sale. The building had been purchased at a cost of 90,000 on January 1, 2014, and had a book value of 67,500 on December 31, 2018. It was being depreciated on a straight-line basis (no residual value) over a 20-year life. Required: 1. Prepare all the journal entries on Seavers books for January 1, 2019, through December 31, 2020, in regard to the Bench note. 2. Prepare all the journal entries on Seavers books for July 1, 2019, through July 1, 2021, in regard to the Hane note. 3. Prepare the notes receivable portion of Seavers balance sheet on December 31, 2019 and 2020.
Non-Interest-Bearing Notes Payable On November 16, 2019, Clear Glass Company borrowed 20,000 from First American Bank by issuing a 90-day, non-interest-bearing note. The bank discounted this note at 12% and remitted the difference to Clear Glass. Required: 1. Prepare the journal entries of Clear Glass to record the preceding information, the related calendar year-end adjusting entry, and payment of the note at maturity. 2. Show how the preceding items Would be reported on the December 31, 2019, balance sheet. 3. Next Level What is Clear Glass Companys effective interest rate?
Arvan Patel is a customer of Banks Hardware Store. For Mr. Patels latest purchase on January 1, 2018, Banks Hardware issues a note with a principal amount of $480,000, 13% annual interest rate, and a 24-month maturity date on December 31, 2019. Record the journal entries for Banks Hardware Store for the following transactions. A. Note issuance B. Subsequent interest entry on December 31, 2018 C. Honored note entry at maturity on December 31, 2019.
On January 1, 2021, Eagle Company borrows $15,000 cash by signing a four-year, 7% installment note. The note requires four equal payments of $4,428, consisting of accrued interest and principal on December 31 of each year from 2021 through 2024. Exercise 14-13 (Algo) Installment note entries LO C1 "repare the journal entries for Eagle to record the note's issuance and each of the four payments. Hote: Round your intermediate calculations and final answers to the nearest dollar amount. View transaction list Journal entry worksheet < 1 2 3 4 Eagle borrows $15,000 cash by signing a four-year, 7% installment note. Record the issuance of the note on January 1, 2021. Note: Enter debits before credits. Date January 01, 2021 General Journal Debit Credit
H5. Required information Skip to question [The following information applies to the questions displayed below.] On January 1, 2021, Eagle Company borrows $21,000 cash by signing a four-year, 5% installment note. The note requires four equal payments of $5,922, consisting of accrued interest and principal on December 31 of each year from 2021 through 2024. Prepare an amortization table for this installment note. (Round all amounts to the nearest whole dollar.)
On November 1, 2018, A-1 Products borrowed $64,000 on a 5%, 5-year note with annual installment payments of $12,800 plus interest due on November 1 of each succeeding year. On November 1, 2020, what is the balance of the Long-Term Notes Payable account? (Round your answer to nearest whole number.) OA. $38,400 OB. $64,000 OC. $12,800 O D. $51,200
Required information Use the following information for the Exercises below. (Algo) [The following information applies to the questions displayed below.] On January 1, 2021, Eagle Company borrows $33,000 cash by signing a four-year, 6% installment note. The note requires four equal payments of $9,524, consisting of accrued interest and principal on December 31 of each year from 2021 through 2024. Exercise 10-12 (Algo) Installment note amortization table LO C1 Prepare an amortization table for this installment note. Note: Round all amounts to the nearest whole dollar. Payments Period Ending (A) Beginning (B) Debit Interest (C) Debit Notes Balance Expense Payable Date 2021 2022 2023 2024 Total $ 33,000 EA -23,476 -23,476 $ 33,000 33,000 (D) Credit Cash $ $ 9,524 9,524 9,524 9,524 38,096 (E) Ending Balance 0
Required information Use the following information for the Exercises below. (Algo) [The following information applies to the questions displayed below.] On January 1, 2021, Eagle Company borrows $21,000 cash by signing a four-year, 5% installment note. The note requires four equal payments of $5,922, consisting of accrued interest and principal on December 31 of each year from 2021 through 2024. Exercise 10-12 (Algo) Installment note amortization table LO C1 Prepare an amortization table for this installment note. (Round all amounts to the nearest whole dollar.)
Required information Use the following information for the Exercises below. (Algo) [The following information applies to the questions displayed below.] On January 1, 2021, Eagle Company borrows $21,000 cash by signing a four-year, 5% installment note. The note requires four equal payments of $5,922, consisting of accrued interest and principal on December 31 of each year from 2021 through 2024. Exercise 10-12 (Algo) Installment note amortization table LO C1 Prepare an amortization table for this installment note. (Round all amounts to the nearest whole dollar.) Payments Period Ending (A) Beginning (B) Debit Intereșt Balance (E) Ending Balance (C) Debit Notes (D) Credit Cash Date Expense Payable 2021 2022 2023 2024 Total 12:0 re to search 69°F Cloudy 10/13 11 ort sc A4 96 & 6. 8 7T Y] U G H.
Required information [The following information applies to the questions displayed below] On January 1, 2021, Eagle Company borrows $26,000 cash by signing a four-year, 8% installment note. The note requires four equal payments of $7,850, consisting of accrued interest and principal on December 31 of each year from 2021 through 2024. Prepare an amortization table for this installment note. Note: Round all amounts to the nearest whole dollar. Payments Period Ending (A) Beginning (B) Debit Interest (C) Debit Notes Balance. Expense Payable Date 2021 2022 2023 2024 Total $ k (D) Credit Cash S 0 (E) Ending Balance

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