Check my work Exercise 1419 Installment note lender amortiza

Check my work Exercise 14-19 Installment note; lender; amortization schedule LO14-3] FinanceCo lent $87 million to Corbin Construction on January 1, 2018, to construct a playground. Corbin signed a three-year, 8% installment note to be paid in three equal payments at the end of each year. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) ed Required: 1. Prepare the journal entry for FinanceCo\'s lending the funds on January 1, 2018 2. Prepare an amortization schedule for the three-year term of the installment note. 3. Prepare the journal entry for the first installment payment on December 31. 2018. 4. Prepare the journal entry for the third installment payment on December 31, 2020. Complete this question by entering your answers in the tabs below Req 2Req 1 3 and 4 Prepare an amortization schedule for the three-year term of the installment note. (Enter your answers in whole dollars.) Dec. 31Cash Payment Effective Interest 2018 2019 2020 Req 1 3 and 4 >

Solution

Amortization schedule

Journal Entries

01/01/2018 Corbin Construction comapny\'s loan A/C Dr. 8.7 Million Dollars

To Bank A/c 8.7 Million Dollars

(Being entry for Loan amount given being passed in the books of Finance Co.)

31/12/2018 Bank account Dr. 3375892

to Interest recievable on loan 696000

to Corbin Construction comapny\'s loan A/C 2679892

(Being First installment recieved)

31/12/2020

Bank account Dr. 3375892

to Interest recievable on loan 250066

to Corbin Construction comapny\'s loan A/C 3125825

(Being Thrid installment recieved)

Dec 31	Cash Payment	Effective interest	Decrease in balance	Outstanding Balance
2018	3375892	696000	2679892	6020108
2019	3375892	481608	2894283	3125825
2020	3375892	250066	3125825	0