Use the data in Exercise 14-25 to prepare journal entries that KEC Environmental Corp. would make to
Question:
Use the data in Exercise 14-25 to prepare journal entries that KEC Environmental Corp. would make to record the loan on December 31, 2020, and the four payments starting on December 31, 2021, through the final payment on December 31, 2024.
Exercise 14-25
(C) (A) (B) Debit (D) Credit (E) Debit Beginning Interest Notes Ending Cash Balance Expense 8% x (A) Payable Balance Prior (E) Period Ending (D) – (B) (B) + (C) (A) – (C) $60,000 $4,800 $18,482 $23,282 $41,518 Dec. 31/20.. Dec. 31/21. 23,282 21,557 41,518 3,321 19,961 21,557 Dec. 31/22 1,725 21,557 23,282 -0- $9,846 $60,000 $69,846 Increasing Principal Amounts Decreasing Accrued Interest Total Principal Payments Interest $1,725 2022 $21,557 2021 $19,961 $3,321 $18,482 $4,800 2020 $15,000 $20,000 $0 $5,000 $10,000 $25,000 Payment Pattern End of Year
Step by Step Answer:
Journal entries 2020 Dec 31 Cash 100000 Notes Payable 100000 Borrowed 100000 ...View the full answer
Fundamental Accounting Principles Volume II
ISBN: 978-1260305838
16th Canadian edition
Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann
Related Video
A journal entry is an act of keeping or making records of any transactions either economic or non-economic. Transactions are listed in an accounting journal that shows a company\'s debit and credit balances. The journal entry can consist of several recordings, each of which is either a debit or a credit
Students also viewed these Business questions
-
Use the data in Exercise 14-23 to prepare journal entries that Sack Port Ventures Inc. would make to record the loan on December 31, 2020, and the four payments starting on December 31, 2021, through...
-
Use the data in Exercise 15-47 for Marilyn, Inc. In Exercise 15-47 Marilyn, Inc., uses a standard cost system and analyzes overhead using a two-variance analysis. The following information relates to...
-
Use the data in Exercise 15-25 to prepare journal entries that KEC Environmental Corp. would make to record the loan on December 31, 2014, and the four payments starting on December 31, 2015, through...
-
Calculate z(2, 3, 1), where (x, y, z) = xyz.
-
Find the least number of cables required to connect 100 computers to 20 printers to guarantee that 2every subset of 20 computers can directly access 20 different printers. (Here, the assumptions...
-
What is an opening entry? Why is it needed? Pass the opening entry with imaginary figures.
-
True or False: Among the various sources of capital, U.S. large cap equities have a lower cost of capital than do U.S. small cap equities.
-
Many large electronics manufacturers offer very easy credit terms when a customer purchases their products. For example, Mitsubishi often offers its customers a $0 down, no payments for 12 months...
-
A physical inventory of Liverpool Company taken at December 31 reveals the following. Per Unit Item Units Cost Market Car audio equipment Speakers 339 $ 94 $ 102 Stereos 254 115 104 Amplifiers 320 90...
-
Use the information below to construct a step-graph of the six consumers willingness to pay. Willingness to pay for one unit ($) Fred . 8 Ann . 2 Morgan 16 Andre .. 12 Carla 2 Hanson 4
-
On December 31, 2020, KEC Environmental Corp. borrowed $100,000 by signing a four-year, 5% installment note. The note requires four equal payments of accrued interest and principal on December 31 of...
-
For Solar Industries and its related but separate financing company Solar Financing Corp, calculate the debt to equity ratio for 2019 and 2020. Explain why there are such significant differences in...
-
In Problems 4752, convert each angle in degrees to radians. Express your answer in decimal form, rounded to two decimal places. 51
-
Suppose that the total benefit and total cost from a continuous activity are B(Q) = 76 + 24Q 2Q 2 and C(Q) = 60 + 6Q. What level of Q maximize net benefits? At the value of Q that maximize net...
-
What are some examples that prove the impact of terrorism on global economics?
-
Describe the main elements and the results of the Asian financial crisis?
-
A DC motor and a speed reducer transmission needs to be designed to power a hip joint of a robot as shown below. You are asked to choose the right DC motor for this robot to support the motion of the...
-
Explain 3 factors which might limit the effectiveness of Fiscal policy in controlling the AD of a country.
-
The Canyons Resort, a Utah ski resort, announced a $400 million expansion of lodging properties, lifts, and terrain. Assume that this investment is estimated to produce $79.7 million in equal annual...
-
Identify the tax issues or problems suggested by the following situations. State each issue as a question. Jennifer did not file a tax return for 2007 because she honestly believed that no tax was...
-
The following terms are important in issuing bonds: (a) Face value, (b) Contractual interest rate, (c) Bond indenture, and (d) Bond certificate. Explain each of these terms
-
(a) What is a lease agreement? (b) What are the two most common types of leases? (c) Distinguish between the two types of leases.
-
(a) What is a lease agreement? (b) What are the two most common types of leases? (c) Distinguish between the two types of leases.
-
2 Michael Wittry has been investing in his Roth IRA account for 20 years. Two years ago, his account was worth $215,658. After losing 1/3 of its original value, it then gained 1/2 of its new value...
-
identify these sources, asset use, asset exchange, or claims exchange. purchase inventory shipping cost.
-
k esc Canvas $475,000. $345,000 O $455,000. O $345,000. O $400,000. Question 2 O Cash 12,480 On October 1, 2022, a company lends cash and accepts a $12,000 note receivable that offers 8% interest and...
Study smarter with the SolutionInn App