On March 31, 2018, Vine Company issued a $487,000, 2%. 3-year note payable when the market rate

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On March 31, 2018, Vine Company issued a $487,000, 2%. 3-year note payable when the market rate was 8%. Interest is due on each March 31, beginning March 31, 2019. The company's fiscal year ends on December 31.

Required

a. Prepare the journal entry to record the issuance of the note payable.

b. Prepare an amortization table.

c. Prepare the journal entry to record interest expense at December 31, 2018.

d. Prepare the journal entry required on March 31, 2019.

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Related Book For answer-question

Intermediate Accounting

ISBN: 978-0134730370

2nd edition

Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella

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Question Posted: Jun 27, 2019 08:28 AM

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On March 31, 2018, Vine Company issued a $487,000, 2%. 3-year note payable when the market rate

Question:

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a We compute the present value of the future payment of 487000 for 3 years at a periodic interest ra...View the full answer

Intermediate Accounting

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