1 answer

On November 1, 2017, Norwood borrows $560,000 cash from a bank by signing a five-year installment...

Question:

On November 1, 2017, Norwood borrows $560,000 cash from a bank by signing a five-year installment note bearing 9% interest. T

On November 1, 2017, Norwood borrows $560,000 cash from a bank by signing a five-year installment note bearing 9% interest. The note requires equal payments of $143,970 each year on October 31. (Table B.1, Table B.2, Table B.3, and Table B.4) (Use appropriate factor(s) from the tables provided.) Required: 1. Complete an amortization table for this installment note. 2. Prepare the journal entries in which Norwood records the following: (a) Accrued interest as of December 31, 2017 (the end of its annual reporting period) (b) The first annual payment on the note. Complete this question by entering your answers in the tabs below. Req 2A and 2B Req 1 Prepare the journal entries in which Norwood records for accrued interest as of December 31, 2017 (the end of its annual reporting period) and the first annual payment on the note. View transaction list Journal entry worksheet 1 2 Record the interest accrued on the note as of December 31, 2017. Note: Enter debits before credits. Date Debit General Journal Credit Dec 31, 2017

Answers

2a
Dec 31,2017 Interest expense 8400 =560000*9%*2/12
      Interest payable 8400
2b
Oct 31,2018 Interest expense 42000 =560000*9%*10/12
Interest payable 8400
Notes payable 93570
      Cash 143970
.

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