Part 1 Cucina Corp. signed a new installment note on January 1, 2018, and deposited the proceeds of $70,000 in its bank account. The note has a 3-year term, compounds 5 percent interest annually, and requires an annual installment payment on December 31. Cucina Corp. has a December 31 year-end and adjusts its accounts only at year-end. Required: Use an online application, such as the loan calculator with annual payments at mycalculators.com, to generate an amortization schedule. Enter that information into an amortization schedule with the following headings: Year, Beginning Notes Payable, Interest Expense, Repaid Principal on Notes Payable, and Ending Notes Payable. Prepare the journal entries on (a) January 1, 2018, and December 31 of (b) 2018, (c) 2019, and (d) 2020. If Cucina Corp.'s year-end were March 31, rather than December 31, prepare the adjusting journal entry would it make for this note on March 31, 2018? PART 1 REQUIRED 1 IS IN AN ATTACHED IMAGE Required 2 Prepare the journal entries on (a) January 1, 2018, and December 31 of (b) 2018, (c) 2019, and (d) 2020. (Do not round intermediate calculations. Round final answers to nearest whole dollar. If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Record the signing of the installment note on January 1, 2018. (Note: Enter debits before credits.) Date General Journal Debit Credit Jan 01, 2018 [ ] [ ] [ ] Record the installment payment on December 31, 2018. (Note: Enter debits before credits.) Date General Journal Debit Credit Dec 31, 2018 [ ] [ ] [ ] Record the installment payment on December 31, 2019. (Note: Enter debits before credits.) Date General Journal Debit Credit Dec 31, 2019 [ ] [ ] [ ] Record the installment payment on December 31, 2020. (Note: Enter debits before credits.) Date General Journal Debit Credit Dec 31, 2020 [ ] [ ] [ ] Required 3 If Cucina Corp.'s year-end were March 31, rather than December 31, prepare the adjusting journal entry would it make for this note on March 31, 2018? (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Record the adjusting journal entry for this note on March 31, 2018. (Note: Enter debits before credits.) Date General Journal Debit Credit March 31, 2018 [ ] [ ] [ ]
Part 1
Cucina Corp. signed a new installment note on January 1, 2018, and deposited the proceeds of $70,000 in its bank account. The note has a 3-year term, compounds 5 percent interest annually, and requires an annual installment payment on December 31. Cucina Corp. has a December 31 year-end and adjusts its accounts only at year-end.
Required:
- Use an online application, such as the loan calculator with annual payments at mycalculators.com, to generate an amortization schedule. Enter that information into an amortization schedule with the following headings: Year, Beginning Notes Payable, Interest Expense, Repaid Principal on Notes Payable, and Ending Notes Payable.
- Prepare the journal entries on (a) January 1, 2018, and December 31 of (b) 2018, (c) 2019, and (d) 2020.
- If Cucina Corp.'s year-end were March 31, rather than December 31, prepare the
adjusting journal entry would it make for this note on March 31, 2018?
PART 1 REQUIRED 1 IS IN AN ATTACHED IMAGE
Required 2
Prepare the journal entries on (a) January 1, 2018, and December 31 of (b) 2018, (c) 2019, and (d) 2020. (Do not round intermediate calculations. Round final answers to nearest whole dollar. If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
- Record the signing of the installment note on January 1, 2018. (Note: Enter debits before credits.)
Date General Journal Debit Credit
Jan 01, 2018 [ ] [ ] [ ]
- Record the installment payment on December 31, 2018. (Note: Enter debits before credits.)
Date General Journal Debit Credit
Dec 31, 2018 [ ] [ ] [ ]
- Record the installment payment on December 31, 2019. (Note: Enter debits before credits.)
Date General Journal Debit Credit
Dec 31, 2019 [ ] [ ] [ ]
- Record the installment payment on December 31, 2020. (Note: Enter debits before credits.)
Date General Journal Debit Credit
Dec 31, 2020 [ ] [ ] [ ]
Required 3
If Cucina Corp.'s year-end were March 31, rather than December 31, prepare the adjusting journal entry would it make for this note on March 31, 2018? (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
- Record the adjusting journal entry for this note on March 31, 2018. (Note: Enter debits before credits.)
Date General Journal Debit Credit
March 31, 2018 [ ] [ ] [ ]
Part 2 (ALL INFO FOR PART 2 IS ALSO ATTCHED IN AN IMAGE)
Net Work Corporation, whose annual accounting period ends on December 31, issued the following bonds:
Date of bonds: January 1, 2018
Maturity amount and date: $260,000 due in 10 years (December 31, 2027)
Interest: 13.0 percent per year payable each December 31
Date issued: January 1, 2018
Required:
For each of the three independent cases that follow, provide the following amounts to be reported on the January 1, 2018, financial statements immediately after the bonds were issued: (Deductions should be indicated by a minus sign.)
January 1, 2018—Financial Statements: Case A (issued at 100) Case B (at 98) Case C (at 102)
a. Bonds payable [ ] [ ] [ ]
b. Unamortized premium (discount) [ ] [ ] [ ]
c. Carrying value [ ] [ ] [ ]
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