x Chapter 12. Using langu x https//newconnect.mheducation.com/flow/connect.html

Question

x Chapter 12. Using langu x https//newconnect.mheducation.com/flow/connect.html On January 1, 2017, Eagle borrows S33,000 cash by signing a fer year 6% netament note The note requires four equal perments or 9.524, consisting of accrued interest and princioal on Decembe 31 of each year from 2017 through 2020. Table B.1. Table B2 ?? end 1 ble e (Use appropriate iacioiuem ue : bles prov ded. Round your intermediate calculations e-d final answers the nearest dollar amount Round all table values to 4 cecimel places, and use the rounded table values in eel·tions) Prepare the journal entries for Eagle to record the loan on January 1, 2017 and the four poyments from December 31, 2017, through December 31, 2020 Journal entry worksheet Record the payment of the second installment payment of interest and principal on December 31. 2018. debts befos cradia Dec 31 2018 Notes y DOLL 5 6 8

Explanation / Answer

Journal Entries: Date General Journal Debit Credit Jan 01, 2017 Cash   $                           33,000 Notes Payable $             33,000 (To record borrowing) Dec 31, 2017 Notes Payable $                              7,544 Interest Expense $                              1,980 Cash $               9,524 (To record interest expense and loan repayment) Dec 31, 2018 Notes Payable $                              7,997 Interest Expense $                              1,527 Cash $               9,524 (To record interest expense and loan repayment) Dec 31, 2019 Notes Payable $                              8,476 Interest Expense $                              1,048 Cash $               9,524 (To record interest expense and loan repayment) Dec 31, 2020 Notes Payable $                              8,983 Interest Expense $                                 541 Cash $               9,524 (To record interest expense and loan repayment) Working: Loan Amortization Schedule: Year Beginning Loan Balance (1) Interest Expense(2)=(1)*6% Annual installment (3) Reduction of Principal (4)=(3)-(2) Ending Loan Balance (5)=(1)-(4) 12/31/17 $                                               33,000 $                              1,980 $               9,524 $                7,544 $              25,456 12/31/18 $                                               25,456 $                              1,527 $               9,524 $                7,997 $              17,459 12/31/19 $                                               17,459 $                              1,048 $               9,524 $                8,476 $                8,983 12/31/20 $                                                 8,983 $                                 541 $               9,524 $                8,983 $                       -0

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