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On November 1, 2013, Norwood borrows $ 200,000 cash from a bank by signing a five year installment note bearing 8% interest. The note requires equal total payments each year on October 31. Required:
1. Compute the total amount of each installment payment.
2. Complete an amortization table for this installment note similar to the one in Exhibit.
3. Prepare the journal entries in which Leetch records
(a) Accrued interest as of December 31, 2013 (the end of its annual reporting period), (b) The first annual payment on the note.
Glenda received a proportionate nonliquidating distribution from the EFG Partnership. The distribution consisted of $10,000 cash and property with an adjusted basis to the partnership of $34,000 and a fair market value of $42,000.
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