On October 1, 2015, Gordon Enterprises borrows $150,000 cash from a bank by signing a three-year installment
Question:
On October 1, 2015, Gordon Enterprises borrows $150,000 cash from a bank by signing a three-year installment note bearing 10% interest. The note requires equal total payments each year on September 30.
Required
1. Compute the total amount of each installment payment.
2. Complete an amortization table for this installment note similar to the one in Exhibit.
3. Prepare the journal entries to record
(a) Accrued interest as of December 31, 2015 (the end of its annual reporting period)
(b) The first annual payment on the note.
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Related Book For
Fundamental Accounting Principles
ISBN: 978-0077862275
22nd edition
Authors: John Wild, Ken Shaw, Barbara Chiappetta
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