A company purchased two new delivery vans for a total of $250,000 on January 1,2013.The company paid $40,000 cash and signed a $210,000,three-year,8% note for the remaining balance.The note is to be paid in three annual end-of-year payments of $81,487 each,with the first payment on December 31,2013.Each payment includes interest on the unpaid balance plus principal.
(1) Prepare a note amortization table using the format below:
(2) Prepare the general journal entries to record the purchase of the vans on January 1,2013 and the second annual installment payment on December 31,2014.

Question

A company purchased two new delivery vans for a total of $250,000 on January 1,2013.The company paid $40,000 cash and signed a $210,000,three-year,8% note for the remaining balance.The note is to be paid in three annual end-of-year payments of $81,487 each,with the first payment on December 31,2013.Each payment includes interest on the unpaid balance plus principal.
(1) Prepare a note amortization table using the format below:
  (2) Prepare the general journal entries to record the purchase of the vans on January 1,2013 and the second annual installment payment on December 31,2014.

Quizplus · Accepted Answer

The Answer of A company purchased two new delivery vans for a total of $250,000 on January 1,2013.The company paid $40,000 cash and signed a $210,000,three-year,8% note for the remaining balance.The note is to be paid in three annual end-of-year payments of $81,487 each,with the first payment on December 31,2013.Each payment includes interest on the unpaid balance plus principal.
(1) Prepare a note amortization table using the format below:
  (2) Prepare the general journal entries to record the purchase of the vans on January 1,2013 and the second annual installment payment on December 31,2014.

A Company Purchased Two New Delivery Vans for a Total