On October 1, 2017, Gordon borrows ($150),000 cash from a bank by signing a three-year installment note
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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 10.12.
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.
Data From Exhibit 10.12
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Related Book For
Financial And Managerial Accounting Information For Decisions
ISBN: 9781259726705
7th Edition
Authors: John Wild, Ken Shaw, Barbara Chiappetta
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