tMaindoinvoker assignment slakeAssig Locatorassignmenttakein

tMain.do?invoker assignment s&lakeAssig; Locator-assignment-take&inprogress-false; com/irn/t Show MeHow Calculator Print tem trtries for Instaliment Note Trensactions On January 1. Year 1, Bryson Company cecained a s39,000, tour year, 10% instalment note from Campbell Bank. The note meres annual payments 0,1220 beginning on December 31, Yeer l. a. Prepare an amortization table for this installment note, similar to the one presented in Exhibit 4 Note: Round the computation of the interest expense to the nearest whole doliar. Enter all amounts as positive numbers In Year 4, round the emount in the Decrease in Notes Payable column elther up or down to ensure that the Carrying Amount zeroes out Notes Payable column ether up or down to ensure that the Carrying Amount zeroes out (10% of January 1 Note Carrying Amount) Decrease in Crying Netes Payable Ending December January 1 rng Amount (Cash Pald) Year 3 Year 4 b. Journalize the entries for the issuance of the note and the four annual note payments e: per o compond transaction, r an amont box down to ensure that debits equal credes s not req?? bn entry, leave it tiok. Fer the yer 4 e try (due to roundng), adut Netes Aoyabie up ar 9:46?4) ? - SAMSUNG

Solution

Req 1: Amortization table Year ending Carrying Note Interest Decrease in Carrying 1-Jan Payment Expense Note pyble 31-Dec Year1 39000 12300 3900 8400 30600 Year2 30600 12300 3060 9240 21360 Year3 21360 12300 2136 10164 11196 Year4 11196 12300 1104 11196 0 Req 2: Journal entries: Date Accounts title and expplanations Debit $ Credit $ Year1Jan1 Cash Account Dr. 39000      10% 4-yr Instalment note 39000 Yr1 Dec31 10% 4-yr Instalment Note Dr. 8400 Interest expense Account Dr. 3900      Cash 12300 Yr2 Dec31 10% 4-yr Instalment Note Dr. 9240 Interest expense Account Dr. 3060      Cash 12300 Yr3 Dec31 10% 4-yr Instalment Note Dr. 10164 Interest expense Account Dr. 2136      Cash 12300 Yr4 Dec31 10% 4-yr Instalment Note Dr. 11196 Interest expense Account Dr. 1104      Cash 12300 Req 3 Interest expense of $ 3900 will be reported in Income statement