70.2K

Verified Solution

Link Copied!

Problem 14-13 (Algo) Note and installment note with unrealistic interest rate [LO14-3] Braxton Technologies, Inc, constructed a conveyor for A\&G Warehousers that was completed and ready for use on January 1,2021. A\&G paid for the conveyor by 15s ing a $150,000, four-year note that specified 8% interest to be paid on December 31 of each year. and the note is to be repaid at the end of four years. The conveyor was custom-buit for A\&G, so its cash price was unknown. By comparison with similar transactions it was determined that a reasonable interest rate was 12%. (FV of $1. PV of $1, EVA of $1. PVA of \$1. EVAD of \$1 and PVAD of \$1) (Use appropriate factor(s) from the tables provided.) Required: 1. Prepare the journal entry for A\&G's purchase of the conveyor on January 1,2021. 2.Prepare an amortization schedule for the four-year term of the note. 3. Prepare the joumal entry for A\&G's third interest payment on December 31, 2023 4.If A\&G's note had been an installment note to be paid in four equal payments at the end of each year beginning December 31,2021 , what would be the amount of each instaliment? 5. By considering the installment payment of requirement 4, prepare an amortization schedule for the four-year term of the installment note 6. Prepare the journal entry for A\&G's third installment payment on December 31, 2023. Complete this question by entering your answers in the tabs below. Prepare the journal entry for A\&G's purchase of the convevor on January 1,2021 . (If no entry is required for a transaction/ovent, select "No joumal entry required" in the first account field. Found intermodiate calculations and finat answers to the nearest whole dollar.) Complete this question by entering your answers in the tabs below. Prepare the journal entry for A\&G's purchase of the conveyor on January 1, 2021. (If no entry is required for a transaction/event, select "No foumal entry required" in the first account field. Round intermediate calculations and final answers to the nearest whole dollar.) Journal entry worksheet Note1 Enter debits betore crearts. Complete this question by entering your answers in the tabs below. Prepare an amortization schedule for the four-year term of the note. (Round intermedlate calculations and final ansiwers to the nearest whole doliar.) Complete this question by entering your answers in the tabs below. Prepare the journal entry for A\&G's third interest payment on December 31,2023 . (If no entry is required for a transaction/event, select "No joumal entry required" in the first account field. Round intermediate calculations and final answers to the nearest whole dollar.) Journal entry worksheet Notel Enter debits berore.oreavts: comparison with similar transactions it was determined that a reasonable interest rate was 12\%. (FV of \$1. PV of \$1, EVA of \$1. PVA of \$1. FVAD of \$1 and PVAD of \$1) (Use appropriate factor(s) from the tobles provided.) Required: 1. Prepare the journal entry for A&G 's purchase of the conveyor on January 1, 2021 2. Prepare an amortization schedule for the four-year term of the note. 3. Prepare the journal entry for A\&G's third interest payment on December 31,2023. 4.If A\&G's note had been an installment note to be paid in four equal payments at the end of each year beginning December 31,2021 , what would be the amount of each installment? 5. By considering the installment payment of requitement 4. prepare an amortization schedule for the four-year term of the installment note. 6. Prepare the journal entry for A\&G's third installment payment on December 31, 2023. Complete this question by entering your answers in the tabs below. If A\&G's note had been an installment note to be pald in four equal payments at the end of each year beginning December 31 , 2021, what would be the amount of each installment? (Round intermedlate calculations and final answer to the nearest whole dollari) Required: 1. Prepare the journal entry for A\&G's purchase of the conveyor on January 1, 2021. 2. Prepare an amortization schedule for the four-year term of the note. 3. Prepare the journal entry for A\&G's third interest payment on December 31, 2023. 4.If A\&G's note had been an installment note to be paid in four equal payments at the end of each year beginning December 31,2021 , what would be the amount of each installment? 5. By considering the installment payment of requirement 4, prepare an amortization schedule for the four-year term of the installment note 6. Prepare the journal entry for A\&G's third installment payment on December 31, 2023. Complete this question by entering your answers in the tabs below. By considering the instaliment payment of requirement 4, prepare an amortization schedule for the four-year term of the installment note. (Round intermediate calculations and final answers to the nearest whole dollar.) Prepare the journal entry for A\&G's third installment payment on December 31, 2023. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round intermedlate calculations and final answers to the nearest whole dollar.) Journal entry worksheet Record A\&G's third installment payment. Noter Enter-debits beface credits. Problem 14-13 (Algo) Note and installment note with unrealistic interest rate [LO14-3] Braxton Technologies, Inc, constructed a conveyor for A\&G Warehousers that was completed and ready for use on January 1,2021. A\&G paid for the conveyor by 15s ing a $150,000, four-year note that specified 8% interest to be paid on December 31 of each year. and the note is to be repaid at the end of four years. The conveyor was custom-buit for A\&G, so its cash price was unknown. By comparison with similar transactions it was determined that a reasonable interest rate was 12%. (FV of $1. PV of $1, EVA of $1. PVA of \$1. EVAD of \$1 and PVAD of \$1) (Use appropriate factor(s) from the tables provided.) Required: 1. Prepare the journal entry for A\&G's purchase of the conveyor on January 1,2021. 2.Prepare an amortization schedule for the four-year term of the note. 3. Prepare the joumal entry for A\&G's third interest payment on December 31, 2023 4.If A\&G's note had been an installment note to be paid in four equal payments at the end of each year beginning December 31,2021 , what would be the amount of each instaliment? 5. By considering the installment payment of requirement 4, prepare an amortization schedule for the four-year term of the installment note 6. Prepare the journal entry for A\&G's third installment payment on December 31, 2023. Complete this question by entering your answers in the tabs below. Prepare the journal entry for A\&G's purchase of the convevor on January 1,2021 . (If no entry is required for a transaction/ovent, select "No joumal entry required" in the first account field. Found intermodiate calculations and finat answers to the nearest whole dollar.) Complete this question by entering your answers in the tabs below. Prepare the journal entry for A\&G's purchase of the conveyor on January 1, 2021. (If no entry is required for a transaction/event, select "No foumal entry required" in the first account field. Round intermediate calculations and final answers to the nearest whole dollar.) Journal entry worksheet Note1 Enter debits betore crearts. Complete this question by entering your answers in the tabs below. Prepare an amortization schedule for the four-year term of the note. (Round intermedlate calculations and final ansiwers to the nearest whole doliar.) Complete this question by entering your answers in the tabs below. Prepare the journal entry for A\&G's third interest payment on December 31,2023 . (If no entry is required for a transaction/event, select "No joumal entry required" in the first account field. Round intermediate calculations and final answers to the nearest whole dollar.) Journal entry worksheet Notel Enter debits berore.oreavts: comparison with similar transactions it was determined that a reasonable interest rate was 12\%. (FV of \$1. PV of \$1, EVA of \$1. PVA of \$1. FVAD of \$1 and PVAD of \$1) (Use appropriate factor(s) from the tobles provided.) Required: 1. Prepare the journal entry for A&G 's purchase of the conveyor on January 1, 2021 2. Prepare an amortization schedule for the four-year term of the note. 3. Prepare the journal entry for A\&G's third interest payment on December 31,2023. 4.If A\&G's note had been an installment note to be paid in four equal payments at the end of each year beginning December 31,2021 , what would be the amount of each installment? 5. By considering the installment payment of requitement 4. prepare an amortization schedule for the four-year term of the installment note. 6. Prepare the journal entry for A\&G's third installment payment on December 31, 2023. Complete this question by entering your answers in the tabs below. If A\&G's note had been an installment note to be pald in four equal payments at the end of each year beginning December 31 , 2021, what would be the amount of each installment? (Round intermedlate calculations and final answer to the nearest whole dollari) Required: 1. Prepare the journal entry for A\&G's purchase of the conveyor on January 1, 2021. 2. Prepare an amortization schedule for the four-year term of the note. 3. Prepare the journal entry for A\&G's third interest payment on December 31, 2023. 4.If A\&G's note had been an installment note to be paid in four equal payments at the end of each year beginning December 31,2021 , what would be the amount of each installment? 5. By considering the installment payment of requirement 4, prepare an amortization schedule for the four-year term of the installment note 6. Prepare the journal entry for A\&G's third installment payment on December 31, 2023. Complete this question by entering your answers in the tabs below. By considering the instaliment payment of requirement 4, prepare an amortization schedule for the four-year term of the installment note. (Round intermediate calculations and final answers to the nearest whole dollar.) Prepare the journal entry for A\&G's third installment payment on December 31, 2023. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round intermedlate calculations and final answers to the nearest whole dollar.) Journal entry worksheet Record A\&G's third installment payment. Noter Enter-debits beface credits

Answer & Explanation Solved by verified expert

See Answer