The amounts to be paid on principal , Accounting Basics

On January 1, 2012, Muller Co. borrowed cash from Washington Valley Bank by issuing a $100,000 face value 3-year installment note payable that carried a 7% interest rate. The note is to be repaid by making yearly cash payments of $38,105, which contains both principal and interest. The payments are to be made on December 31 of every year.

Required:

a) Prepare an amortization schedule for the term of the loan, showing the amounts to be paid on principal and interest for 2012, 2013, and 2014 and the loan balance at the end of every year.

b) What amount of interest expense will be displayedon the 2013 income statement?

c) What amount of liability for the note will be displayed on the balance sheet on December 31, 2013?

Posted Date: 3/22/2013 5:09:50 AM | Location : United States







Related Discussions:- The amounts to be paid on principal , Assignment Help, Ask Question on The amounts to be paid on principal , Get Answer, Expert's Help, The amounts to be paid on principal Discussions

Write discussion on The amounts to be paid on principal
Your posts are moderated
Related Questions
#How to make journal entries?

Market determines are useful for analyzing publicly traded corporations. Many of these calculates use stock price, which reflects the market's (public's) expectation for the compan

Q. What is Instance financial reporting? For instance financial reporting should - Provide information concerning an enterprise's past performance because such information i

Jackson Corporation uses a standard cost system, concerned manufacturing overhead on the basis of machine hours. The company's overhead standards per unit are given below. Varia

There is almost not, any organization that does not have an accountant. His task is all pervasive and he is included in a broad range of activities, particularly in a huge and comp

Q. What do you mean by Aging? Aging -- a process where accounts receivable are sorted out by age (typically current, 30 to60 days old, 60 to 120 days old and so on.) Aging perm

a 50 petty cash fund has cash of 20 and valid receipts for 40. The entry to replenish the fund would include a

Acquired a shop on monthly rent for Rs. 3,000 after paying cash Rs. 36,000 as advance rent ??

Question 1 Write a short note on the following with example a. Activating budgets b. Reversing journals c. Memorandum vouchers d. Optional vouchers e. Creating Bill of Materials

Create an adjusted trial balance & journal entries Bank charges of $932.70 were not recorded in the books for 2014. These were credit card fees charged by the bank for Edwards