Bill's Bowling is looking to renovate and expand. Bill, the owner, approaches a wealthy business man...

 

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Bill's Bowling is looking to renovate and expand. Bill, the owner, approaches a wealthy business man who frequents the bowling lanes to see if he can secure some capital to help finance his expansion plans. On December 31st 20x5, the business man agrees to lend Bill a $225,000 as a note at 9% interest due over 6 years. The amount will be payable in equal installments on December 31 of each of the next 6 years, beginning in 20x6. The installments will be blended principal and interest of $50,157. Bill's accounting year end is December 31st. Required - Prepare an amortization schedule showing, for each year, how much interest is paid, what the reduction of the loan is, and what the ending balance of the loan is for Bill's loan. Record the issue of the note payable in 20x5. Record the first 2 installment payments (20x6 and 20x7). Show the presentation of the note on the Statement of Financial Position for 20x7 а. b. с. d. Bill's Bowling is looking to renovate and expand. Bill, the owner, approaches a wealthy business man who frequents the bowling lanes to see if he can secure some capital to help finance his expansion plans. On December 31st 20x5, the business man agrees to lend Bill a $225,000 as a note at 9% interest due over 6 years. The amount will be payable in equal installments on December 31 of each of the next 6 years, beginning in 20x6. The installments will be blended principal and interest of $50,157. Bill's accounting year end is December 31st. Required - Prepare an amortization schedule showing, for each year, how much interest is paid, what the reduction of the loan is, and what the ending balance of the loan is for Bill's loan. Record the issue of the note payable in 20x5. Record the first 2 installment payments (20x6 and 20x7). Show the presentation of the note on the Statement of Financial Position for 20x7 а. b. с. d.

Answer rating: 100% (QA)

Answer 1 Periods Beginning Notes payable Installments Interest 9B principal paymentCD En... View the full answer