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
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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)
Transcribed Image Text: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
Transcribed Image Text: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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