A partial amortization schedule for a note payable with interest paid annually that was issued on...

 

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A partial amortization schedule for a note payable with interest paid annually that was issued on January 1, Year 1, is shown next Principal Accounting balance January Period Year 1 1 $ 485,600 Required: Applied to Principal Cash Payment $ 52,000 Applied to Interest $ 16,320 $ 35,680 a. What is the annual rate of interest charged on this loan? b. Using the horizontal financial statements model, record the appropriate amounts for the following two events: (1) January 1, Year 1, issue of the note payable. (2) December 31, Year 1, payment on the note payable. Complete this question by entering your answers in the tabs below. Required A Required B Using the horizontal financial statements model, record the appropriate amounts for the following two events: (1) January 1, Year 1, issue of the note payable. (2) December 31, Year 1, payment on the note payable. Note: In the Statement of Cash Flows column, use OA to designate operating activity, IA for investment activity, and FA for financing activity. Enter any decreases to account balances and cash outflows with a minus sign. Leave cells blank if no input is needed. Balance Sheet Assets Event Number Cash Liabilities Installment + Note Stockholders' Equity Common Stock + Retained Earnings Revenue 1. + 2 2 Total *NC=Net change in cash Income Statement Statement of Expenses Net Income Cash Flows < Required A Requir NC Show les A partial amortization schedule for a note payable with interest paid annually that was issued on January 1, Year 1, is shown next Principal Accounting balance January Period Year 1 1 $ 485,600 Required: Applied to Principal Cash Payment $ 52,000 Applied to Interest $ 16,320 $ 35,680 a. What is the annual rate of interest charged on this loan? b. Using the horizontal financial statements model, record the appropriate amounts for the following two events: (1) January 1, Year 1, issue of the note payable. (2) December 31, Year 1, payment on the note payable. Complete this question by entering your answers in the tabs below. Required A Required B Using the horizontal financial statements model, record the appropriate amounts for the following two events: (1) January 1, Year 1, issue of the note payable. (2) December 31, Year 1, payment on the note payable. Note: In the Statement of Cash Flows column, use OA to designate operating activity, IA for investment activity, and FA for financing activity. Enter any decreases to account balances and cash outflows with a minus sign. Leave cells blank if no input is needed. Balance Sheet Assets Event Number Cash Liabilities Installment + Note Stockholders' Equity Common Stock + Retained Earnings Revenue 1. + 2 2 Total *NC=Net change in cash Income Statement Statement of Expenses Net Income Cash Flows < Required A Requir NC Show les

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a To calculate the annual rate of interest charged on this loan we can use the formula Interest Expe... View the full answer