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Corporate Financial Accounting 14th Edition by Carl Warren,James Reeve,Jonathan Duchac
Edition 14ISBN: 978-1305653535Corporate Financial Accounting 14th Edition by Carl Warren,James Reeve,Jonathan Duchac
Edition 14ISBN: 978-1305653535 Exercise 41
Entries for installment note transactions
On January 1 of Year 1, Bryson Company obtained a $147,750, four-year, 7% installment note from Campbell Bank. The note requires annual payments of $43,620, beginning on December 31 of Year 1.
A. Prepare a table for this installment note, similar to the one presented in Exhibit 4. Round to the nearest dollar.
B. Journalize the entries for the issuance of the note and the four annual note payments.
C. Describe how the annual note payment would be reported on the Year 1 income statement.
On January 1 of Year 1, Bryson Company obtained a $147,750, four-year, 7% installment note from Campbell Bank. The note requires annual payments of $43,620, beginning on December 31 of Year 1.
A. Prepare a table for this installment note, similar to the one presented in Exhibit 4. Round to the nearest dollar.
B. Journalize the entries for the issuance of the note and the four annual note payments.
C. Describe how the annual note payment would be reported on the Year 1 income statement.
Explanation
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Installment note : It refers to a type o...
Corporate Financial Accounting 14th Edition by Carl Warren,James Reeve,Jonathan Duchac
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