On March 31, 2022, Vine Company issued a $487,000, 2%, 3-year note payable when the market rate
Question:
On March 31, 2022, Vine Company issued a $487,000, 2%, 3-year note payable when the market rate was 8%. Interest is due on each March 31, beginning March 31, 2023. The company’s fiscal year ends on December 31.
Required
a. Prepare the journal entry to record the issuance of the note payable.
b. Prepare an amortization table.
c. Prepare the journal entry to record interest expense at December 31, 2022.
d. Prepare the journal entry required on March 31, 2023.
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a We compute the present value of the future payment of 487000 for 3 years at a peri...View the full answer
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Related Book For
Intermediate Accounting
ISBN: 9780136946694
3rd Edition
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
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