On January 1, 2014, Parker Company obtained a $125,000, four-year, 6% installment note from Clark Bank. The
Question:
On January 1, 2014, Parker Company obtained a $125,000, four-year, 6% installment note from Clark Bank. The note requires annual payments of $36,074, beginning on December 31, 2014.
a. Prepare an amortization table for this installment note, similar to the one presented in Exhibit 3.
b. Journalize the entries for the issuance of the note and the four annual note payments.
c. Describe how the annual note payment would be reported in the 2014 incomestatement.
Transcribed Image Text:
Decrease December 31 January 1 Note Interest Expse In Notes Carrying Amount (B-C)(A-D) 519,742 15,229 10,445 5,374 Carrying Payment (6% of January 1 Payable For the Year Ending December 31, 2013 December 31, 2014 December 31, 2015 December 31, 2016 December 31, 2017 Amount (cash pald) Note Carrying Amount) $24,000 5,698 5,698 5,698 5,698 53745.690 $28,490 1,440 (6% of $24,000) 4258 4,513 4,784 5,071 5374 $24,000 19,742 15,229 10,445 1,185 (6% of $19,742) 914(6% of $15,229) 627 (6% of $10,445) 324"(6% of $5,374) $4,490 Rounded (S5,374- S5,698)
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 37% (8 reviews)
a Amortization of Installment Notes A B C D E Decrease Dec 31 For the January 1 Note Interest Expens...View the full answer
Answered By
Jehal Shah
I believe everyone should try to be strong at logic and have good reading habit. Because If you possess these two skills, no matter what difficult situation is, you will definitely find a perfect solution out of it. While logical ability gives you to understand complex problems and concepts quite easily, reading habit gives you an open mind and holistic approach to see much bigger picture.
So guys, I always try to explain any concept keeping these two points in my mind. So that you will never forget any more importantly get bored.
Last but not the least, I am finance enthusiast. Big fan of Warren buffet for long term focus investing approach. On the same side derivatives is the segment I possess expertise.
If you have any finacne related doubt, do reach me out.
5.00+
1+ Reviews
10+ Question Solved
Related Book For
Corporate Financial Accounting
ISBN: 978-1133952411
12th edition
Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac
Question Posted:
Students also viewed these Accounting questions
-
MY NOTES ASK YOUR TEACHER (a) A small plastic bead with a mass of 17.8 g and a charge of -0.664 C is suspended in equilibrium above the center of a large, horizontal sheet of rubber that has a...
-
The following graph is similar to the one presented in Exhibit 17.4. Actual sales volume for the firm is below its budgeted sales volume. Required Find the missing amounts: a. Actual minus budgeted...
-
An electric dipole, consisting of two opposite charges of magnitude 2 10 Ceach separated by a distance 3 cm is placed in an electric field of magnitude 2 10 N/C along the direction making 90 with...
-
Would individual mandates for health insurance be more or less burdensome to the poor than employer mandates? Would lower-income groups be wise to favor one plan over the other?
-
(a) Sketch the molecular orbitals of the H2- ion and draw its energy-level diagram. (b) Write the electron configuration of the ion in terms of its MOs. (c) Calculate the bond order in H2- (d)...
-
In Exercises find the indefinite integral. 1 - 3 -1 + 9t + 1 dt
-
Review the list of common closing mistakes in the chapter. Give specific examples of how each might affect your success in a sales call.
-
In March, Lasso Manufacturing had the following unit production costs: materials $10 and conversion costs $8. On March 1, it had zero work in process. During March, Lasso transferred out 22,000...
-
What role does strategic foresight play in shaping strategic planning processes, particularly in anticipating and adapting to disruptive technological advancements, regulatory shifts, and...
-
A store maintains data on customers, products and purchase records in three tables: CUSTOMER, PRODUCT, PURCHASE. The store manager wants to know which product is on its maximum discount for each...
-
On January 1, 2014, O'Brien Company issued a $210,000, six-year, 9% installment note to Bulldog Bank. The note requires annual payments of $46,813, beginning on December 31, 2014. Journalize the...
-
At the beginning of the current year, two bond issues (Simmons Industries 7% 20-year bonds and Hunter Corporation 8% 10-year bonds) were outstanding. During the year, the Simmons Industries bonds...
-
The water-filling solution for the loading problem is defined by Equation (6.213) subject to the constraint of Equation (6.2 10). Using this pair of relations, formulate a recursive algorithm for...
-
(a) Calculate the rank according to the ratio of value and cost. Cost Step Value 1 4 2 2 7 6 3 9 0 4 5 4 5 6 3 18 3 0 (b) A new module has 8 inputs, 2 entity type access and 5 outputs. Which of the...
-
Carol charged her credit card 10,000 dollars on December 31, 2011. The monthly interest rate charged by the credit card company is 1% of the unpaid balance at the end of each month. Carol wishes to...
-
The surface is 1.50 m long. Compute the magnitude of the horizontal component of the force and compute the vertical component of the force exerted by the fluid on that surface. Then compute the...
-
Eight years ago, Jacqueline de Santos purchased a brand-new condominium at the Toronto Harbourfront for $180,000. Jacqueline had been saving for her first home purchase ever since she graduated from...
-
Of all the price analysis methodologies that exist, which are the foundational methods. Longing & Shorting. Trading & Investing. Volume & sentiment. On-chain & Macroeconomic. Mean reversion &...
-
Determine whether the following functions are smooth (by the restricted definition 4.2) over x R. a. f(x) = 2x - 2x + 1 b. h(x) = c. g(x) d. k(x) = x 2 43 +4 10x + 4 13 for x (o, 1] for x (1,0) x2...
-
Cable Corporation is 60% owned by Anna and 40% owned by Jim, who are unrelated. It has noncash assets, which it sells to an unrelated purchaser for $100,000 in cash and $900,000 in installment...
-
The Foster Tax Services Company was established on 2 January of the current year to help clients with tax planning and preparation of their tax returns. The business engaged in the following...
-
Many city and county governments realize that an entity can only control what it measures. As a result, many municipal governments are introducing nonfinancial performance measures to help improve...
-
The centralized computer technology department of Hardy Company has expenses of $320,000. The department has provided a total of 4,000 hours of service for the period. The Retail Division has used...
-
The centralized computer technology department of Hardy Company has expenses of $320,000. The department has provided a total of 4,000 hours of service for the period. The Retail Division has used...
-
Before you begin your website, go online and research what you consider best practices in web design. Find websites for three businesses similar to yours. Analyze them by considering the following:...
-
Assume that part of accounts and other receivables on Thompson Toys' February 2 , 2 0 1 0 , balance sheet is comprised of $ 4 3 , 2 2 5 , 0 0 0 of notes receivable. Two notes make up the amount. The...
-
The Dairy Division of Famous Foods, Inc. produces and sells milk to outside customers. The operation has the capacity to produce 200,000 gallons of milk a year. Last year's operating results were as...
Study smarter with the SolutionInn App