Principles of Accounting Volume 1
19th Edition
ISBN: 9781947172685
Author: OpenStax
Publisher: OpenStax College
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Textbook Question
Chapter 13, Problem 1EB
Sharapovich Inc. borrowed $50,000 from Kerber Bank and signed a 5-year note payable stating the interest rate was 5% compounded annually. Sharapovich Inc. will make payments of $11,548.74 at the end of each year. Prepare an amortization table showing the principal and interest in each payment.
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Sharapova Inc. borrowed $50,000 from Kerber Bank and signed a 5-year note payable stating the interest rate was 5% compounded annually. Sharapova Inc. will make payments of $11,548.74 at the end of each year. Prepare an amortization table showing the principal and interest in each payment.
Annual Period
Interest Expense
Annual Payment
Principal Payment
Ending Balance
1
2
3
4
5
PLEASE NOTE: All dollar amounts will be rounded to two decimal places with "$" and commas as needed (i.e. $12,345.67). For the journal entry, you must enter the account names exactly as written below and for accounts having similar accounting treatment (DR or CR), you are to record Balance Sheet accounts first, followed by Income Statement accounts.
Based on the amortization schedule above and using the following accounts,
Principal Payment
Cash
Interest Income
LT Notes Payable
Annual Payment
Interest Expense
provide the journal entry for the…
Sharapova Inc. borrowed $50,000 from Kerber Bank and signed a 5-year note payable stating the interest rate was 5% compounded annually. Sharapova Inc.
will make payments of $11,548.74 at the end of each year. Prepare an amortization table showing the principal and interest in each payment.
Annual Period Interest Expense Annual Payment Principal Payment Ending Balance
1
2
4
5
PLEASE NOTE: All dollar amounts will be rounded to two decimal places with "$" and commas as needed (i.e. $12,345.67). For the journal entry, you must
enter the account names exactly as written below and for accounts having similar accounting treatment (DR or CR), you are to record Balance Sheet accounts
first, followed by Income Statement accounts.
[HINT - You definitely will want to use this EXCEL spreadsheet Chapter13 HW-02 #3 Worksheet.xlsx a to assist in your calculations.]
Based on the amortization schedule above and using the following accounts,
Principal Payment
Cash
Interest Income
LT Notes Payable
Annual…
acobs Company borrowed $10,000 on a one-year, 8 percent note payable from the local bank onApril 1. Interest was paid quarterly, and the note was repaid one year from the time the money was borrowed. Calculate the amount of cash payments Jacobs was required to make in each of the two calendar years that were affected by the note payable.
Chapter 13 Solutions
Principles of Accounting Volume 1
Ch. 13 - An amortization table ________. A. breaks each...Ch. 13 - A debenture is ________. A. the interest paid on a...Ch. 13 - The principal of a bond is ________. A. the person...Ch. 13 - A convertible bond can be converted into ________....Ch. 13 - On January 1, a company issued a 5-year $100,000...Ch. 13 - On July 1, a company sells 8-year $250,000 bonds...Ch. 13 - On January 1 a company issues a $75,000 bond that...Ch. 13 - On October 1 a company sells a 3-year, $2,500,000...Ch. 13 - On April 1 a company sells a 5-year, $60,000 bond...Ch. 13 - The effective-interest method of bond amortization...
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