ewconnect mheducation.com Homework Help Save&Exit; Submi Check my work On Januar
ID: 2570514 • Letter: E
Question
ewconnect mheducation.com Homework Help Save&Exit; Submi Check my work On January 1, 2017 Eagle borrows $22.000 cash by signing a four year, 6% installment note. The note requires four equal total payments of accrued interest and principal on December 31 of each year from 2017 through 2020. aableBL lable l2. TableB Table 8.4) (Use appropriate factor(s) from the tables provided. Round your intermediate calculations and final answers to the nearest dolar amount. Round all table values to 4 decimal places, and use the rounded table values in calculations.) and Prepare the journal entries for Eagle to record the loan on January 1, 2017, and the four payments from December 31, 2017, through December 31, 2020 Journal entry worksheet Eagle borrows $22,000 cash by signing a four-year, 6% installment note. Record the issuance of the note on January 1, 2017 Note: Enter debits before creditsExplanation / Answer
Calculation of Amount of Each of Four Equal Payments:
Interest Rate = 6%
Note Value = $22,000
Present Value Annuity Factor (PVAF) @6% for 4 Years = 3.465
Installment Amount = Note Value / PVAF
= $22,000/3.465
= $6,349
Year
Opening
Balance
Interest
Principal
Balance
Amount
(Installment)
Closing
Balance
2017
22,000
1,320
5,029
6,349
16,971
2018
16,971
1,018
5,331
6,349
11,640
2019
11,640
698
5,651
6,349
5,989
2020
5,989
359
5,990
6,349
0
Date
Particulars
Debit
Credit
Jan 1, 2017
Cash
22,000
Notes Payable
22,000
Dec 31, 2017
Interest Expense
1,320
Notes Payable
5,029
Cash
6,349
Dec 31, 2018
Interest Expense
1,018
Notes Payable
5,331
Cash
6,349
Dec 31, 2019
Interest Expense
698
Notes Payable
5,651
Cash
6,349
Dec 31, 2020
Interest Expense
359
Notes Payable
5,990
Cash
6,349
Year
Opening
Balance
Interest
Principal
Balance
Amount
(Installment)
Closing
Balance
2017
22,000
1,320
5,029
6,349
16,971
2018
16,971
1,018
5,331
6,349
11,640
2019
11,640
698
5,651
6,349
5,989
2020
5,989
359
5,990
6,349
0
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.