On October 1, 2017, Gordon borrows $150,000 cash from a bank by signing a three-year installment note
Question:
On October 1, 2017, Gordon borrows $150,000 cash from a bank by signing a three-year installment note bearing 10% interest. The note requires equal payments of $60,316 each year on September 30.
Required
1. Complete an amortization table for this installment note similar to the one in Exhibit 14.12.
2. Prepare the journal entries to record (a) accrued interest as of December 31, 2017 (the end of its annual reporting period) and (b) the first annual payment on the note.
Exhibit 14.12
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Related Book For
Fundamental Accounting Principles
ISBN: 978-1259536359
23rd edition
Authors: John Wild, Ken Shaw, Barbara Chiappett
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