Vinubhai Required information.Problem 10-26A (Algo) Effect of an installment note on financial statements LO 10-1[The following information applies to the questions displayed below]On January 1, Year 1, Brown Company borrowed cash from First Bank by issuing a $102,000 face-value, four-year termnote that had an 7 percent annual interest rate. The note is to be repaid by making annual cash payments of $30,113 thatinclude both interest and principal on December 31 of each year. Brown used the proceeds from the loan to purchase landthat generated rental revenues of $54,000 cash per year.Problem 10-26A (Algo) Part aRequired6. Prepare an amortization schedule for the four-year period (Round intermediate calculations to nearest dollar amount. Round youranswers to the nearest dollar amount.)YearYear 1Year 2Year 3Year 4BROWN COMPANYAmortization Schedule$102,000, 4-Year Term Note, 7% Interest Rate -PrincipalBalanceon January 1Cash Payment Applied to Applied toDecember 31 InterestPrincipalPrincipalBalanceEnd of Period

Amortization is an accounting technique used to periodically lower the book value of a loan or an…

Answered: Required information Problem 10-26A…

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications

Section: Chapter Questions

Problem 27E

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Proceeds from notes payable On January 26, Nyree Co. borrowed cash from Conrad Bank by issuing a 45-day note with a face amount of 150,000. A. Determine the proceeds of the note, assuming the note carries an interest rate of 10%. B. Determine the proceeds of the note, assuming the note is discounted at 10%.
A company collects an honored note with a maturity date of 24 months from establishment, a 10% interest rate, and an initial loan amount of $30,000. Which accounts are used to record collection of the honored note at maturity date? A. Interest Revenue, Interest Expense, Cash B. Interest Receivable, Cash, Notes Receivable C. Interest Revenue, Interest Receivable, Cash, Notes Receivable D. Notes Receivable, Interest Revenue, Cash, Interest Expense
Required information [The following information applies to the questions displayed below.] 1/1 1/1 12/31 12/31 On January 1, Year 1, Brown Company borrowed cash from First Bank by issuing a $76,500 face value, four-year term note that had an 8 percent annual interest rate The note is to be repaid by making annual cash payments of $23,097 that include both interest and principal on December 31 of each year. Brown used the proceeds from the loan to purchase land that generated rental revenues of $35,955 cash per year. b. Organize the information in accounts under an accounting equation. Note: Round your answers to the nearest whole dollar amount. Enter any decreases to account balances with a minus sign. If there is no effect on the Account Titles for Retained Earnings, leave the cell blank. Not all cells will require entry. Event Year 1 Balance Year 2 Beginning balance BROWN COMPANY Effect of Events on the Accounting Equation Year 1, Year 2, Year 3 and Year 4 Liabilities Notes Payable…
USE THE FOLLOWING INFORMATION FOR THIS QUESTION: Installment note payable borrowed from the bank Present value interest factor from table Signed for Annual interest rate Payments are made 195,060 $7,802 $99,442 The outstanding loan balance at the end of year 3 equals what amount? $103,420 zero $287,000 unable to determine 2.77509 3 years 4% Annually
Proceeds from Notes Payable On January 26, Elegant Co. borrowed cash from Conrad Bank by issuing a 120-day note with a face amount of $58,800. Assume a 360-day year. a. Determine the proceeds of the note, assuming the note carries an interest rate of 9%. $ 58,800 b. Determine the proceeds of the note, assuming the note is discounted at 9%. 60,618 X
Proceeds from Notes Payable On January 26, McMaster Co. borrowed cash from Quantum Bank by issuing a 45-day note with a face amount of $324,000. Assume a 360-day year. Required: a. Determine the proceeds of the note, assuming that the note carries an interest rate of 10%.$ b. Determine the proceeds of the note, assuming that the note is discounted at 10%.$
Assuming a 360-day year, the interest charged by the bank, at the rate of 7%, on a 90-day, discounted note payable of $115,133 is a. $115,133 b. $8,059 c. $4,030 d. $2,015
Problem 1 On September 1, 2020, Rayhak Company assigned specific receivables totaling to P750,000 to Pak Bank as a collateral on a P625,000, 12% loan. Rayhak will continue to collect the assigned accounts receivable. The bank also assessed a 2% service charge on the total accounts receivable assigned. Rayhak is to make monthly payments to the bank with the cash collected on the assigned accounts receivable. Collections of assigned account during September 2020totaled P260,000 gross of cash discounts amounting to P3,500. Prepare all the e journal entries relating to the problem for the month of September 2020. (Books of Rayhak)
3. On January 1, 20x1, Drive Co. paid cash of P200,000 and issued a noninterest-bearing note P2,000,000 in exchange for vehicle. The note is due in four equal annual installments. The first installment is due on January 1, 20x1 and the succeeding installments are due every 1st of January. The prevailing rate of interest for this type of not is 12%. Requirements: a. Prepare the journal entries. b. How much is the interest expense in 20x2? c. How much is the carrying amount of the note on December 31, 20x1? Please answer optionAand B and c
(Algo) Amortization schedule for an installment note LO 10-1 On January 1, Year 1, Beatie Company borrowed $220,000 cash from Central Bank by issuing a five-year, 7 percent note. The principal and interest are to be paid by making annual payments in the amount of $53,656. Payments are to be made December 31 of each year, beginning December 31, Year 1. Required Prepare an amortization schedule for the interest and principal payments for the five-year period. (Round your answers to the nearest dollar amount.)
BBY Company loaned $66,116 to Orwell, Inc, accepting Orwell's 2-year, $80,000, zero-interest-bearing note. The implied interest rate is 10%. Prepare BBY's journal entries for the initial transaction, recognition of interest each year, and the collection of $80,000 at maturity. Debit - Notes Receivable $80,000 Credit - Credit - Cash Debit - Credit - Debit - Credit - Interest Revenue 6.026 DEC 16 618 10
3. On January 1, Esly Company obtained a $125,000, 7-year 5% installment note from Farmers Bank. The note requires annual payments of $21,602, with the first payment occurring on the last day of the fiscal year. (a) Prepare an amortization schedule for Year 1 and Year 2 Date January 1 carrying amount Note payment Interest expense Decrease in Notes payable (b) Journalize the following entries: a. Issued the installment notes for cash on January 1. Dec 31 carrying amount

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