On January 1, McNel Company borrows $151,000 cash by signing a four-year, 8% installment note. The note requires four equal payments consisting of accrued interest and principal on December 31 of each for the next four years. Required: 1. Compute the amount of each of the four equal payments. (Note: Use Table 8.3 in Appendix B.) 2. Prepare an amortization table for this installment note. 3. Prepare the journal entries in which McNell Company records the following: (a) McNell Company borrows $151,000 cash by signing a four-year, 8% Installment note. (b) Record the first payment on December 31, Year 1. (d) Record the last payment on December 31, Year 4. Complete this question by entering your answers in the tabs below. Reg 1 Req 1 Compute the amount of each of the four equal payments. Note: Round the PV factor to four decimal places. Round your answer to the nearest whole dollar. Amount of each payment Reg 2 Reg 2 View transaction Est Prepare the journal entries in which McNeil Company records the following: (a) McNell Company borrows $151,000 cash by signing a four-year, 8% installment note. (5) Recond the first payment on December 31, Year 1. (c) Record the last payment on December 31, Year 4. Date January 01 Journal entry worksheet 2 Reg 3A to 3C Roq 3A to 30 3 Record entry Record McNell Company's borrowing of $151,000 cash by signing a four-year, 8% installment note. Note: Enter debits before crecies General Journal Clear entry > Show less Journal entry worksheet < 1 3 Note: Enter debits before credits. Date December 31 Record entry Req 1 Prepare an amortizat Req 2 for this installment note. Note: Round your intermediate calculations to the nearest dollar amount. Round your answer to the nearest whole dollars. Period Year 1 Year 2 Clear entry Year 3 Year 4 Total Record the first installment payment on December 31, Year 1. Reg 2 General Journal Beginning Balance Req 3A to 3C Debit Credit Debit Interest Expense View general Journal > + Debit Notes Payable= Journal entry worksheet Credit Cash Note: Enter debits before credits. Date December 31 Record the last instaliment payment on December 31, Year 4. Record entry General Journal Ending Balance Clear entry Debit Credit View general Journal

On January 1, McNel Company borrows $151,000 cash by signing a four-year, 8% installment note. The note requires four equal payments consisting of accrued interest and principal on December 31 of each for the next four years. Required: 1. Compute the amount of each of the four equal payments. (Note: Use Table 8.3 in Appendix B.) 2. Prepare an amortization table for this installment note. 3. Prepare the journal entries in which McNell Company records the following: (a) McNell Company borrows $151,000 cash by signing a four-year, 8% Installment note. (b) Record the first payment on December 31, Year 1. (d) Record the last payment on December 31, Year 4. Complete this question by entering your answers in the tabs below. Reg 1 Req 1 Compute the amount of each of the four equal payments. Note: Round the PV factor to four decimal places. Round your answer to the nearest whole dollar. Amount of each payment Reg 2 Reg 2 View transaction Est Prepare the journal entries in which McNeil Company records the following: (a) McNell Company borrows $151,000 cash by signing a four-year, 8% installment note. (5) Recond the first payment on December 31, Year 1. (c) Record the last payment on December 31, Year 4. Date January 01 Journal entry worksheet 2 Reg 3A to 3C Roq 3A to 30 3 Record entry Record McNell Company's borrowing of $151,000 cash by signing a four-year, 8% installment note. Note: Enter debits before crecies General Journal Clear entry > Show less Journal entry worksheet < 1 3 Note: Enter debits before credits. Date December 31 Record entry Req 1 Prepare an amortizat Req 2 for this installment note. Note: Round your intermediate calculations to the nearest dollar amount. Round your answer to the nearest whole dollars. Period Year 1 Year 2 Clear entry Year 3 Year 4 Total Record the first installment payment on December 31, Year 1. Reg 2 General Journal Beginning Balance Req 3A to 3C Debit Credit Debit Interest Expense View general Journal > + Debit Notes Payable= Journal entry worksheet Credit Cash Note: Enter debits before credits. Date December 31 Record the last instaliment payment on December 31, Year 4. Record entry General Journal Ending Balance Clear entry Debit Credit View general Journal

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter14: Long-term Liabilities: Bonds And Notes

Section: Chapter Questions

Problem 11E

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