Computing Installment Payment on Note Payable On January 1, 2020, a borrower signed a long-term note,...

 

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Computing Installment Payment on Note Payable On January 1, 2020, a borrower signed a long-term note, face amount $30,000 with time to maturity of 6 years. The interest rate is 7% and equal annual installment payments will pay off the loan after six years. a. How much is each annual installment payment? • Note: Do not use a negative sign with your answer. • Note: Round your answer to the nearest whole dollar. $0 b. Record the first installment payment on December 31, 2020. • Note: Round your answers to the nearest whole dollar. • Note: List multiple debits or credits (when applicable) in alphabetical order. Date Dec. 31, 2020 Account Name ÷ + → Dr. 0 0 0 Cr. 0 0 0 Cash Inventory Equipment Land Deferred Revenue Bonds Payable Discount on Bonds Payable Discount and Debt Issuance Costs Premium on Bonds Payable Fair Value Adjustment-Bonds Payable Note Payable Discount on Note Payable Premium on Note Payable Fair Value Adjustment-Note Payable Interest Payable Common Stock Paid-in Capital in Excess of Par-Common Stock Paid-in Capital-Stock Warrants Retained Earnings-Prior Period Adjustment Debt Conversion Expense Interest Expense Loss on Redemption of Bonds Gain on Redemption of Bonds Loss-Income Unrealized Gain or Unrealized Gain or Loss-OCI Computing Installment Payment on Note Payable On January 1, 2020, a borrower signed a long-term note, face amount $30,000 with time to maturity of 6 years. The interest rate is 7% and equal annual installment payments will pay off the loan after six years. a. How much is each annual installment payment? • Note: Do not use a negative sign with your answer. • Note: Round your answer to the nearest whole dollar. $0 b. Record the first installment payment on December 31, 2020. • Note: Round your answers to the nearest whole dollar. • Note: List multiple debits or credits (when applicable) in alphabetical order. Date Dec. 31, 2020 Account Name ÷ + → Dr. 0 0 0 Cr. 0 0 0 Cash Inventory Equipment Land Deferred Revenue Bonds Payable Discount on Bonds Payable Discount and Debt Issuance Costs Premium on Bonds Payable Fair Value Adjustment-Bonds Payable Note Payable Discount on Note Payable Premium on Note Payable Fair Value Adjustment-Note Payable Interest Payable Common Stock Paid-in Capital in Excess of Par-Common Stock Paid-in Capital-Stock Warrants Retained Earnings-Prior Period Adjustment Debt Conversion Expense Interest Expense Loss on Redemption of Bonds Gain on Redemption of Bonds Loss-Income Unrealized Gain or Unrealized Gain or Loss-OCI

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