Book Show Me How Calculator Entries for installment note tra

Book Show Me How Calculator Entries for installment note transactions Chart of Accounts Amortization table Journal Final Question Instructi On January 1, 2016 Bryson Compa y obtained a S 150,000 four-year, 9% installment note from Campbell Bank The note requires a nual payments of S46 300 beginning on December 31, 2016. Required: A. Prepare an amortization table for this instaltment note, aimilar to the one presented in Exhibit4 B Jounalize the entries for the issuance of the note and the four annual note payments. Be sure to include the year in the date for the entries Refer to the Chart of Accounts for exact wording of account tites C. Describe how the annual note payment would be reported in the 2016 income statement

Solution

Income statement expense in 2016= 13,500

Amortisation table
For the year ending	Jan 1 carrying amount	Note payment	Interest expense	Decrease in notes payable	Dec 31 carrying amount
Dec 31, 2016	1,50,000.00	46,300.00	13,500.00	32,800.00	1,17,200.00
Dec 31, 2017	1,17,200.00	46,300.00	10,548.00	35,752.00	81,448.00
Dec 31, 2018	81,448.00	46,300.00	7,330.00	38,970.00	42,478.00
Dec 31, 2019	42,478.00	46,300.00	3,823.00	42,477.00	1.00