On January 1, Marshall Co. issued a $360,000, three-year, 6% installment note payable with payments of $134,680
Question:
On January 1, Marshall Co. issued a $360,000, three-year, 6% installment note payable with payments of $134,680 principal and interest due on January 1 for each of the next three years. 1. needed the adjusting journal entry to accrue interest at December 31, Year 2. If required, round answers to the nearest whole amount. 2. Show the account(s) and amount(s) and where it(they) will appear on a classified balance sheet on December 31, Year 2. If required, round answers to the nearest whole amount. 3. On January 1, Year 1, Kennard Co. issued $2,000,000, 5%, 10-year bonds, with interest payable on June 30 and December 31 to yield 6%. The bonds were issued for $1,851,234.
Make an amortization schedule for Year 1 and Year 2 using the effective interest rate method. Round answers to the nearest dollar. Enter all amounts as positive numbers.
Expert Answer:
1 Adjusting Journal Entry to Accrue Interest at December 31 Year 2 First lets calculate the annual i... View the full answer
