Noble Corporation has a 7 percent market interest rate and a December 31 fiscal yearend. During 2019
Question:
Noble Corporation has a 7 percent market interest rate and a December 31 fiscal yearend. During 2019 the following notes were issued to acquire equipment:
June 1 Issued a $140,000, two-year, 6 percent note for a fabrication machine. The face interest is paid semiannually on December 1 and June 1.
November 1 Issued a $140,000, two-year, 7 percent installment note for two trucks. The payments are due monthly beginning November 30.
Required:
A. Make the amortization schedules for these notes.
B. Make the entries for the issuance of each of these notes.
C. Make the entries for the notes through December 31, 2019.
D. How will these liabilities be reported on the 2019 Balance Sheet and Income Statement.
Step by Step Answer:
Introduction To AccountingAn Integrated Approach
ISBN: 9781119600107
8th Edition
Authors: Penne Ainsworth, Dan Deines