Question: On January 1 2014 Parker Company obtained a 125 000 four year

On January 1, 2014, Parker Company obtained a $125,000, four-year, 6% installment note from Clark Bank. The note requires annual payments of $36,074, beginning on December 31, 2014.
a. Prepare an amortization table for this installment note, similar to the one presented in Exhibit 3.


b. Journalize the entries for the issuance of the note and the four annual note payments.
c. Describe how the annual note payment would be reported in the 2014 incomestatement.


Sale on SolutionInn
Sales4
Views379
Comments
  • CreatedFebruary 28, 2014
  • Files Included
Post your question
5000