Business, 04.03.2020 04:46 camiilajakobsen1400

On January 1, 2017, Eagle borrows $23,000 cash by signing a four-year, 9% installment note. The note requires four equal payments of $7,099, consisting of accrued interest and principal on December 31 of each year from 2017 through 2020. (Round your intermediate calculations and final answers to the nearest dollar amount.) 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.

Answers: 3

Show answers

Answers

Answer from: runninglovexoxo

Dr. Cr.

January 1, 2017

Cash $23,000

Account Payable $23,000

December 31, 2017

Account Payable $5,029

Interest Expense $2,070

Cash $7,099

December 31, 2018

Account Payable $5,482

Interest Expense $1,617

Cash $7,099

December 31, 2019

Account Payable $5,975

Interest Expense $1,124

Cash $7,099

December 31, 2020

Account Payable $6,514

Interest Expense $585

Cash $7,099

Explanation:

Installment of $7,099 is divided in interest and principal payments. As Interest payment is decreasing with the balance due is reducing each year due to principal payment with interest payment after paying interest the loan amount is zero after 4th installment. Loan Amortization schedule shows the amortization of loan and interest payment each year and their balances.

Loan Amortization schedule

Date Opening Interest @ 9% Principal Balance

January 1, 2017 $23,000 $23,000

Dec 31, 2017 $23,000 $2,070 $5,029 $17,971

Dec 31, 2018 $17,971 $1,617 $5,482 $12,489

Dec 31, 2019 $12,489 $1,124 $5,975 $6,514

Dec 31, 2020 $6,514 $585 $6,514 $0

Answer from: Quest

the investment was $14,174.196

explanation:

a lump sum means that the father of the example made one deposit and leave it be.

we need to know the value of a capital that generated at 4.05% per year during 28 years the sum of $48,613.24

$capital * (1+0.045)^{28} = 48,613.24$

now clearing the formula to solve for capital we got:

$capital = \frac{48,613.24}{(1+0.045)^{28}}$

and we reach the answer investment = $14,174.20

Answer from: Quest

answer; /// place the thermal compound between the heat sink and the microprocessor;

Another question on Business

Business, 21.06.2019 20:30

The federal act which provided over $7 billion to the epa to protect and promote "green" jobs and a healthier environment is the - national environmental policy act. - resource recovery act.- resource conservation and recovery act.- american recovery and reinvestment act. - clean air act.

Answers: 1

Answer

Business, 22.06.2019 03:30

Assume that all of thurmond company’s sales are credit sales. it has been the practice of thurmond company to provide for uncollectible accounts expense at the rate of one-half of one percent of net credit sales. for the year 20x1 the company had net credit sales of $2,021,000 and the allowance for doubtful accounts account had a credit balance, before adjustments, of $630 as of december 31, 20x1. during 20x2, the following selected transactions occurred: jan. 20 the account of h. scott, a deceased customer who owed $325, was determined to be uncollectible and was therefore written off. mar. 16 informed that a. nettles, a customer, had been declared bankrupt. his account for $898 was written off. apr. 23 the $906 account of j. kenney & sons was written off as uncollectible. aug. 3 wrote off as uncollectible the $750 account of clarke company. oct. 20 wrote off as uncollectible the $1,130 account of g. michael associates. oct. 27 received a check for $325 from the estate of h. scott. this amount had been written off on january 20 of the current year. dec. 20 cater company paid $7,000 of the $7,500 it owed thurmond company. since cater company was going out of business, the $500 balance it still owed was deemed uncollectible and written off. required: prepare journal entries for the december 31, 20x1, and the seven 20x2 transactions on the work sheets provided at the back of this unit. then answer questions 8 and 9 on the answer sheet. t-accounts are also provided for your use in answering these questions. 8. which one of the following entries should have been made on december 31, 20x1?

Answers: 1

Answer

Business, 22.06.2019 16:40

Based on what you learned about time management which of these statements are true

Answers: 1

Answer

Business, 23.06.2019 01:00

Apopular low-cost airline, parson corp., has gone out of business. although the service and price provided by the airline was what customers wanted, the larger airlines were able to drive the low-cost airline out of business through an aggressive price war. which component of the competitive environment does this illustrate?

Answers: 3

Answer

You know the right answer?

On January 1, 2017, Eagle borrows $23,000 cash by signing a four-year, 9% installment note. The note...

Questions