Zinc Corp. obtained a $100,000 loan from First Capital Bank on December 31, 2018. It purchased a piece of heavy equipment for $95,000 on January 2, 2019. The loan bears interest at 8% per year on the unpaid balance and is repayable in four annual blended payments of $30,192 on December 31 each year, starting in 2019.

Required:
1.	Prepare the journal entries to record the following transactions:
?	a.	Receipt of loan proceeds from the bank
?	b.	Purchase of the equipment.
2.	Prepare the loan repayment schedule in the following format:
3.	Prepare the journal entry to record the last loan payment.
4.	Prepare a partial balance sheet showing the loan liability at December 31, 2018.

Transcribed Image Text:

Zinc Corp. Loan Repayment Schedule A B C D E (D - B) (A - C) Ending Year Beginning Reduction Total of loan payable ended loan Interest loan loan Dec. 31 balance expense раутent balance 2017 2018 2019 2020 Zinc Corp. Loan Repayment Schedule A B C D E (D - B) (A - C) Ending Year Beginning Reduction Total of loan payable ended loan Interest loan loan Dec. 31 balance expense раутent balance 2017 2018 2019 2020

Answer rating: 100% (QA)

1 Date General Journal Debit Credit a Dec 31 Cash 100000 2018 Bank loan payable ... View the full answer