On January 1, 2024, Tropical Paradise borrows $39,000 by agreeing to a 6%, four-year note with the bank. The funds will be used topurchase a new BMW convertible for use in promoting resort properties to potential customers. Loan payments of $915.92 are due atthe end of each month, with the first installment due on January 31, 2024.Required:Record the issuance of the installment note payable and the first two monthly payments.Note: Do not round intermediate calculations. Round your final answers to 2 decimal places. If no entry is required for a particulartransaction/event, select "No Journal Entry Required" in the first account field.View transaction listJournal entry worksheetRecord the issuance of a note payable.Note: Enter debits before credits.DateJanuary 01, 2024 CashGeneral JournalNotes PayableDebit50,000.00Credit50,000.00

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

Answered: On January 1, 2024, Tropical Paradise…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter19: Lease And Intermediate-term Financing

Section: Chapter Questions

Problem 17P

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On January 1, 2021, Tropical Paradise borrows $37,000 by agreeing to a 6%, six-year note with the bank. The funds will be used to purchase a new BMW convertible for use in promoting resort properties to potential customers. Loan payments of $613.20 are due at the end of each month with the first installment due on January 31, 2021. Required: Record the issuance of the installment note payable and the first two monthly payments. (Do not round intermediate calculations. Round your final answers to 2 decimal places. If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) Journal entry worksheet 1. Record the issuance of a note payable. 2. Record the first monthly payment. 3. Record the second monthly payment.
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Cucina Corporation signed a new installment note on January 1, 2021, and deposited the proceeds of $54,800 in its bank account. The note has a 3-year term, compounds 4 percent interest annually, and requires an annual installment payment on December 31. Cucina Corporation has a December 31 year-end and adjusts its accounts only at year-end. Required: 1. Use an online application, such as the loan calculator with annual payments at mycalculators.com, to complete the amortization schedule. 2. Prepare the journal entries on (a) January 1, 2021, and December 31 of (b) 2021, (c) 2022, and (d) 2023. 3. If Cucina Corporation's year-end were March 31, rather than December 31, prepare the adjusting journal entry it would make for this note on March 31, 2021. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Use an online application, such as the loan calculator with annual payments at mycalculators.com, to complete the amortization schedule. (Do…

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