On December 1, 2011 Goblin Inc. borrowed $40,000 by signing a five year 6.5% note payable with
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Question:
On December 1, 2011 Goblin Inc. borrowed $40,000 by signing a five year 6.5% note payable with the bank. The note is to be paid off in 10 semi-annual payments beginning June 1, 2012. Assume the installments are to consist of equal amounts of principal plus accrued interest.
a) Prepare an amortization table for the first three payments
b) Record the journal entries for
- December 1, 2011,
- December 31 (the company’s year-end), 2011 and
- June 1, 2012
- December 1, 2012
Expert Answer:
a To prepare an amortization table for the first three payments we need to calculate the equal insta... View the full answer
Related Book For 
Intermediate Accounting
ISBN: 978-0470161012
9th Canadian Edition, Volume 2
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield.
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