Make a partial amortization table

Assignment Help Financial Accounting

Reference no: EM1310235

Catter Company purchased equipment on November 15, 2008. The company paid $10,000 cash and borrowed the remaining balance of $90,000 from its bank for a period of 10 years at an annual interest rate of 12%. The note is payable in monthly installments of $1,250.

a.Prepare a partial amortization table showing the original balance of this note, and the allocation of the first two monthly payments between interest expense and the reduction in the note's unpaid balance.

b.Prepare journal entries on November 15 to record receipt of the note, December 15, January 15 to record the monthly payment, and on December 31 to record the adjusting entry.

Reference no: EM1310235

Questions Cloud

By how much has child reduced her mouth pressure : A beam of parallel rays from a 24 MHz citizens band radio transmitter passes between two electrically conducting (hence opaque to radio waves) buildings located 45.00 m apart. What is an angular width of the beam as it emerges from between the buildi..

Tax effect of rental use : Kristen's AGI is $120,000 before considering effect of rental activity. What is Kristen's AGI after considering the tax effect of rental use of her home?

Determining max annual withdrawal : If upon retirement in twenty years he plans to invest= $800,000 in fund which earns 4%, determine max annual withdrawal he can make over following fifteen years?

Force acts on the skateboarder at the bottom of ramp : What is the tangential acceleration of a bug on the rim of an 11.00 in.-diameter disk if the disk accelerates uniformly from rest to an angular speed of 79.03 rev/min in 3.60 s? One second after the bug starts from rest, what is its centripetal accel..

Make a partial amortization table : Prepare a partial amortization table showing the original balance of this note, and the allocation of the first two monthly payments between interest expense and the reduction in the note's unpaid balance.

Computation of fixed operating cost and breakeven sales : Computation of fixed operating cost and breakeven sales and What is his breakeven level of sales at the level of fixed operating costs determined

Explain the presentation of marketable securities : Explain the presentation of marketable securities in Western's balance sheet at December 31, 2007. In 2008, Western engaged in the following transaction.

Determine the number of lines per centimeter on the grating : The yellow light from a helium discharge tube has a wavelength of 587.50. When this light illuminates a certain diffraction grating it produces a first-order principal maximum at an angle of 1.050.

Finding the balance in right-of-use asset : Warren Co. recorded a right-of-use asset of $900,000 in 8-year lease under which no profit was recorded at commencement by lessor-The balance in right-of-use asset after 2 years will be:

User Account

All Pages