The amounts to be paid on principal , Accounting Basics

Assignment Help:

On January 1, 2012, Muller Co. borrowed cash from Washington Valley Bank by issuing a $100,000 face value 3-year installment note payable that carried a 7% interest rate. The note is to be repaid by making yearly cash payments of $38,105, which contains both principal and interest. The payments are to be made on December 31 of every year.

Required:

a) Prepare an amortization schedule for the term of the loan, showing the amounts to be paid on principal and interest for 2012, 2013, and 2014 and the loan balance at the end of every year.

b) What amount of interest expense will be displayedon the 2013 income statement?

c) What amount of liability for the note will be displayed on the balance sheet on December 31, 2013?


Related Discussions:- The amounts to be paid on principal

Calculate the tax, Sue, Scarlett and Sally are in a partnership together pr...

Sue, Scarlett and Sally are in a partnership together providing accounting services. The partnership uses the cash basis to account for income tax.

How to treat entry , Assume we had given tour advance to party how to treat...

Assume we had given tour advance to party how to treat entry and which head have to given expenditure? Ans) Cash/Bank a/c DR To Party(name)a/c (Advance Paid For Tour)

Acc 206 Week Two Assignment, #Please complete the following 7 exercises bel...

#Please complete the following 7 exercises below in either Excel or a word document (but must be single document). You must show your work where appropriate (leaving the calculatio

Concept of conservatism, Concept of Conservatism: The concept of conse...

Concept of Conservatism: The concept of conservatism, also termed as the concept of prudence, is frequently stated as "anticipate no profit, give for all possible losses". It

When a not-for-profit facility receives a contribution from, When a not-for...

When a not-for-profit facility receives a contribution from a member of the community, the cost of the capital is inconsequential when deciding how to use the contribution, becau

Determine about the sales returns and allowances, Determine about the Sales...

Determine about the Sales returns and allowances Allowance results when a buyer decides to keep defective or damaged goods though at a reduction from the original price.

Explain journal entry, Q. Explain journal entry? A journal is a sequent...

Q. Explain journal entry? A journal is a sequential arranged in order of time record of business transactions. A journal entry is the stacking of a business transaction in the

Illustrate the structure of brain, Illustrate the structure of brain Br...

Illustrate the structure of brain Brain is capable of changing its structure in numerous ways. Synapses become stronger and denser. Tiny blood vessels increase in size and numb

Debit credit, what is the basic meaning of debit and credit

what is the basic meaning of debit and credit

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd