Record (1) the receipt of $20,000 cash from the loan on July 1, 2023; (2) the accrual of Interest on December 31, 2023; (3) theFirst Instalment payment on June 30, 2024; and (4) the accrual of Interest on December 31, 2024. (Round answers to decimalplaces, eg: 5.275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry isrequired, select "No Entry for the account titles and enter O for the amounts. List all debit entries before credit entries.te14(c)Account TitlesCashBanc Loan PayablInterest ExpensInterat PayInterat ExercBanc Loan PayablInterest PayCashInterest ExpensInteracTextbook and MediaList of AccountsDebitWILDHORSE LTD.Statement of Financial Position (Partial)200006006009707600Credit2000060010POPAttempts: 12 of 15 usedWhat amounts would Wildhorse report as current and non-current in the abilities section of its statement of Financial positionon December 31, 2023? (Round answers to 0 decimal places, eg 5,255) On July 1, 2023, Wildhorse Ltd. received a loan from its bank for $20,000 bearing interest at 6%. The loan is payable in two annualinstalments of $10,909 principal and interest on June 30 each year. The company records adjusting journal entries annually at yearend on December 31.(a)Your answer is correct.Prepare an instalment payment schedule for the term of the loan. (Round answers to O decimal places, e.g. 5,255.)$Cash Payment1090910909+AInterest Expense1200617$LAReduction of Principal970910292+APrincipal Balance2000010291-1

Under installment notes, installment payment includes both interest and repayment of principal.…

On July 1, 2023, Wildhorse Ltd. received a loan from its bank for $20,000 bearing interest at 6%. The loan is payable in two annual instalments of $10,909 principal and interest on June 30 each year. The company records adjusting journal entries annually at year end on December 31.

On July 1, 2023, Wildhorse Ltd. received a loan from its bank for $20,000 bearing interest at 6%. The loan is payable in two annual instalments of $10,909 principal and interest on June 30 each year. The company records adjusting journal entries annually at year end on December 31.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Record (1) the receipt of $20,000 cash from the loan on July 1, 2023; (2) the accrual of Interest on December 31, 2023; (3) the
First Instalment payment on June 30, 2024; and (4) the accrual of Interest on December 31, 2024. (Round answers to decimal
places, eg: 5.275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is
required, select "No Entry for the account titles and enter O for the amounts. List all debit entries before credit entries.
te
14
(c)
Account Titles
Cash
Banc Loan Payabl
Interest Expens
Interat Pay
Interat Exerc
Banc Loan Payabl
Interest Pay
Cash
Interest Expens
Interac
Textbook and Media
List of Accounts
Debit
WILDHORSE LTD.
Statement of Financial Position (Partial)
20000
600
600
9707
600
Credit
20000
600
10POP
Attempts: 12 of 15 used
What amounts would Wildhorse report as current and non-current in the abilities section of its statement of Financial position
on December 31, 2023? (Round answers to 0 decimal places, eg 5,255)

On July 1, 2023, Wildhorse Ltd. received a loan from its bank for $20,000 bearing interest at 6%. The loan is payable in two annual
instalments of $10,909 principal and interest on June 30 each year. The company records adjusting journal entries annually at year
end on December 31.
(a)
Your answer is correct.
Prepare an instalment payment schedule for the term of the loan. (Round answers to O decimal places, e.g. 5,255.)
$
Cash Payment
10909
10909
+A
Interest Expense
1200
617
$
LA
Reduction of Principal
9709
10292
+A
Principal Balance
20000
10291
-1

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Step 2: Answer (a) - Installment Payment chedule

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Step 4: Answer (c) - Statement of Financial Position

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