Cucina Corporation signed a new installment note on January 1, 2021, and deposited the proceeds of $54,700 in its bank account. Thenote has a 3-year term, compounds 5 percent interest annually, and requires an annual installment payment on December 31. CucinaCorporation has a December 31 year-end and adjusts its accounts only at year-end.Required:1. Use an online application, such as the loan calculator with annual payments at mycalculators.com, to complete the amortizationschedule.2 Prepare the journal entries on (a) January 1, 2021, and December 31 of (b) 2021, (c) 2022, and (d) 2023.3. If Cucina Corporation's year-end were March 31, rather than December 31. prepare the adjusting journal entry it would make for thisnote on March 31, 2021.cesComplete this question by entering your answers in the tabs below.Required 1 Required 2 Required 3Use an online application, such as the loan calculator with annual payments at mycalculators.com, to complete theamortization schedule. (Do not round intermediate calculations. Round final answers to nearest whole dollar.)BeginningNotes PayableInterestExpenseRepaidPrincipal onNotes PayableEndingNotes PayableYear 2021 $54,700Year 2022Year 2023SRequired 2 >

Answered: Cucina Corporation signed a new…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 1PA: On January 1, 2018, King Inc. borrowed $150,000 and signed a 5-year, note payable with a 10%...

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On January 1, 2018, King Inc. borrowed $150,000 and signed a 5-year, note payable with a 10% interest rate. Each annual payment is in the amount of $39,569 and payment is due each Dec. 31. What is the journal entry on Jan. 1 to record the cash received and on Dec. 31 to record the annual payment? (You will need to prepare the first row in the amortization table to determine the amounts.)
On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to McLaughlin Company for cash. McLaughlin Company charges a 750 service fee, advances 85% of Jordans accounts receivable, and charges an annual interest rate of 9% on any outstanding loan balance. Prepare the related journal entries for Jordan.
Cucina Corporation signed a new installment note on January 1, 2021, and deposited the proceeds of $54,800 in its bank account. The note has a 3-year term, compounds 4 percent interest annually, and requires an annual installment payment on December 31. Cucina Corporation has a December 31 year-end and adjusts its accounts only at year-end. Required: 1. Use an online application, such as the loan calculator with annual payments at mycalculators.com, to complete the amortization schedule. 2. Prepare the journal entries on (a) January 1, 2021, and December 31 of (b) 2021, (c) 2022, and (d) 2023. 3. If Cucina Corporation's year-end were March 31, rather than December 31, prepare the adjusting journal entry it would make for this note on March 31, 2021. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Use an online application, such as the loan calculator with annual payments at mycalculators.com, to complete the amortization schedule. (Do…
Larkspur, Inc. receives $260,400 when it issues a $260,400, 10% mortgage note payable to finance the construction of a building at December 31, 2022. The terms provide for annual installment payments of $43,400 on December 31. Prepare the journal entries to record the mortgage loan and the first two payments. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31, 2023 Dec. 31, 2024
On January 1, 2024, Oriole Corp. borrows $16,800 by signing a 3-year, 6% note payable. The note is repayable in three annual fixed principal payments on December 31 of each year. (a) Question Part Score (b) Question Part Score (c) 2/2 6/6 Prepare journal entries to record the note and the first instalment payment. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem.) Date > Account Titles Debit
Access an online loan calculator with annual payments, such as the one at mycalculators.com, to produce an amortization schedule for Welton Corporation's installment note that has original principal of $36,000, interest of 5% compounded annually, and a term of 3 years. Welton Corporation established the note on the first day of its fiscal year and will fully repay the note by the end of year 3 on its December 31 fiscal year-end. Prepare Welton Corporation's journal entries on (a) January 1, Year 1; (b) December 31, Year 1; (C) December 31, Year 2; and (d) December 31, Year 3. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations. Round your final answers to the nearest dollar amount.) View transaction list Journal entry worksheet 2 3 4 > Record the issuance of the note on January 1, Year 1. Note: Enter debits before credits. Transaction General Journal Debit Credit (a) Record entry Clear…
A borrower has two alternatives for a loan: (1) issue a $420,000, 30-day, 6% note or (2) issue a $420,000, 30-day note that the creditor discounts at 6%. Assume a 360-day year. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. Calculate the amount of the interest expense for each option. Round your answer to the nearest dollar. $ fill in the blank 2 for each alternative. Determine the proceeds received by the borrower in each alternative. Round your answers to the nearest dollar. (1) $420,000, 30-day, 6% interest-bearing note: $ fill in the blank 3 (2) $420,000, 30-day note discounted at 6%: $ fill in the blank 4 Alternative 1 is more favorable to the borrower because the borrower receives more cash .
On January 1, 2019, a company sells a piece of equipment for a list price of $260,000. It receives $30,000 and accepts a note receivable for the remainder. The balance due is on December 31, 2021, and the note pays an annual interest of 3% every December 31st. Required: Assuming the customer’s borrowing rate is 5%, prepare all journal entries for 2019 and 2020 under IFRS.
On January 1, 2021, Julee Enterprises borrows $30,000 to purchase a new Toyota Highlander by agreeing to a 7%, 4-year note with the bank. Payments of $718.39 are due at the end of each month with the first installment due on January 31, 2021.Record the issuance of the note payable and the first two monthly payments. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations. Round your answers to 2 decimal places.) Record the issuance of the note payable on Jan 01, 2021. Date General Journal Debit Credit January 01, 2021 Record the first payment on Jan 31, 2021. Date General Journal Debit Credit January 31, 2021 Record the second payment on Feb 28, 2021. Date General Journal Debit…
LARA Company secured a bank loan of $ 90,000, on 1/4/2020. In return, it signed a 10 month, 6%, note payable. LARA Co. closes its accounts annually, on December 31 of every year. The loan and total interest are to be paid to the bank at the end of the loan term. Required: the adjusting entry on December 31, 2020, will show a credit to interest payable for.
Access an online loan calculator with annual payments, such as the one at mycalculators.com, to produce an amortization schedule for Welton Corporation's installment note that has original principal of $62,000, interest of 12% compounded annually, and a term of 3 years. Welton Corporation established the note on the first day of its fiscal year and will fully repay the note by the end of year 3 on its December 31 fiscal year-end. Prepare Welton Corporation's journal entries on (a) January 1, Year 1: (b) December 31, Year 1: (c) December 31, Year 2; and (d) December 31, Year 3. (If no entry is required for a transaction/event, select "No Journal Entry he nearest dollar Required" in the first account field. Do not round intermediate calculations. Round your final answer amount.) No 1 2 3 4 Transaction (a) (b) (c) (d) Cash Notes Payable (long-term) General Journal No Journal Entry Required Interest Expense Notes Payable (long-term) Cash Interest Expense Cash Answer is not complete. 33 Ⓡ O…
Campus Flights takes out a bank loan in the amount of $200,500 on March 1, 2019. The terms of the loan include a repayment of principal in ten equal installments, paid annually from March 1. The annual interest rate on the loan is 8%, recognized on December 31, the fiscal year-end date. PLEASE NOTE: Round answers to the nearest whole dollar if needed. All whole dollar amounts will have "$" and commas, where needed (i.e. $12,345). Compute the interest recognized for the first payment date as of December 31, 2019. $13,367 Compute the interest recognized for the year 2020 as of the first payment date. $16,040 Compute the principal due on the first payment date, March 1, 2020. $186,659 Compute the interest recognized for the second payment date as of December 31, 2020. __________ Compute the total interest for the year 2020. __________ IMPORTANT: Please count your months carefully as the note's "year" crosses between two fiscal years.

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