Weiss Co. borrowed money by signing a 7-year note payable for $72,000. The company makes annual...

 

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Weiss Co. borrowed money by signing a 7-year note payable for $72,000. The company makes annual payments of $12,000 at the end of each year, which include interest computed at an annual rate of 4 percent. Required: a. Prepare an amortization table for the first three yearly payments, using the following format: Year Annual Payment Interest Expense Reduction in Unpaid Balance Unpaid Balance 72,000 1 12,000 12,000 3 12,000 b. Prepare the journal entry for the third payment, Problem 4 Listed below are transactions that may appear in a statement of cash flows. Indicate by letter whether the cash effect of each transaction is reported as an operating activity (O), investing activity (1), financing activity (F), or none of these (N). a Sale of the company's own common stock b Sale of equipment for cash at a gain Sale of long-term investment for cash at a loss dAcquired equipment by signing a note payable e Acquisition of an office building for cash Sale of inventory for cash 8 Payment of a cash dividend Issuance of bonds payable Purchase of long-term marketable securities for cash JRepayment of bonds payable k Payment of income taxes Paid employees' salaries m Receipt of cash dividend Purchase of treasury stock for cash o Payment of annual bond interest h Weiss Co. borrowed money by signing a 7-year note payable for $72,000. The company makes annual payments of $12,000 at the end of each year, which include interest computed at an annual rate of 4 percent. Required: a. Prepare an amortization table for the first three yearly payments, using the following format: Year Annual Payment Interest Expense Reduction in Unpaid Balance Unpaid Balance 72,000 1 12,000 12,000 3 12,000 b. Prepare the journal entry for the third payment, Problem 4 Listed below are transactions that may appear in a statement of cash flows. Indicate by letter whether the cash effect of each transaction is reported as an operating activity (O), investing activity (1), financing activity (F), or none of these (N). a Sale of the company's own common stock b Sale of equipment for cash at a gain Sale of long-term investment for cash at a loss dAcquired equipment by signing a note payable e Acquisition of an office building for cash Sale of inventory for cash 8 Payment of a cash dividend Issuance of bonds payable Purchase of long-term marketable securities for cash JRepayment of bonds payable k Payment of income taxes Paid employees' salaries m Receipt of cash dividend Purchase of treasury stock for cash o Payment of annual bond interest h

Answer rating: 100% (QA)

Answer Solution a b A B E F 2 A AMORTISATION TABLE ... View the full answer