On January 1, 2024, Evanston Corporation borrowed $10 million from a local bank to construct a new building over the next three years. The loan will be paid back in three equal installments of $3,880,335 on December 31 of each year. The payments include interest at a rate of 8%. se amounts from the amortization schedule to record each installment payment. (If no entry is required for a particular saction/event, select "No Journal Entry Required" in the first account field. Enter your answer in dollars, not millions. (i on should be entered as 5,500,000.).) "iew transaction list
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- Using the information provided, what transaction represents the best application of the present value of an annuity due of $1? A. Falcon Products leases an office building for 8 years with annual lease payments of $100,000 to be made at the beginning of each year. B. Compass, Inc., signs a note of $32,000, which requires the company to pay back the principal plus interest in four years. C. Bahwat Company plans to deposit a lump sum of $100.000 for the construction of a solar farm In 4 years. D. NYC Industries leases a car for 4 yearly annual lease payments of $12,000, where payments are made at the end of each year.Required information [The following information applies to the questions displayed below.) On January 1, 2024, Monster Corporation borrowed $19 million from a local bank to construct a new highway over the next four years. The loan will be paid back in four equal installments of $5,609,334 on December 31 of each year. The payments include interest at a rate of 7%. 2. Prepare an amortization schedule over the four-year life of the installment note. (Round your final answers to the nearest dollar amount. Enter your answer in dollars, not millions. (i.e., $5.5 million should be entered as 5,500,000.).) Date 12/31/2024 12/31/2025 12/31/2026 12/31/2026 Cash Paid Interest Expense Decrease in Carrying Value Carrying ValueFinanceCo lent $8.7 million to Corbin Construction on January 1, 2024, to construct a playground. Corbin signed a three-year, 8% installment note to be paid in three equal payments at the end of each year. Required: Prepare the journal entry for FinanceCo’s lending the funds on January 1, 2024. Prepare an amortization schedule for the three-year term of the installment note. Prepare the journal entry for the first installment payment on December 31, 2024. Prepare the journal entry for the third installment payment on December 31, 2026. Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)
- On January 1, 2021, Strato Corporation borrowed $2 million from a local bank to construct a new building over the next three years. The loan will be paid back in three equal installments of $776,067 on December 31 of each year. The payments include interest at a rate of 8%.Required:1. Record the cash received when the note is issued.2. Prepare an amortization schedule over the three-year life of the installment note. Round answers to the nearest dollar.3. Use amounts from the amortization schedule to record each installment payment.On January 1, 2021, Monster Corporation borrowed $9 million from a local bank to construct a new highway over the next four years. The loan will be paid back in four equal installments of $2,657,053 on December 31 of each year. The payments include interest at a rate of 7%. Required: 1. Record the cash received when the note is issued. 2. Prepare an amortization schedule over the four-year life of the installment note. Round answers to the nearest dollar. 3. Use amounts from the amortization schedule to record each installment payment.On 4/1/22, Little Inc. borrowed funds on a 9%, one-year note to finance the construction of a new building to be used for its own purposes. Construction on the project began on 5/1/22 and was completed on 9/1/22. Rounded to the nearest whole month, how many total months in 2022 should interest be capitalized under the interest capitalization rules? 0 months 4 months 5 months 8 months 9 months 12 months
- FinanceCo lent $8 million to Corbin Construction on January 1, 2021, to construct a playground. Corbin signed a three-year, 6% installment note to be paid in three equal payments at the end of each year.Required:1. Prepare the journal entry for FinanceCo’s lending the funds on January 1, 2021.2. Prepare an amortization schedule for the three-year term of the installment note.3. Prepare the journal entry for the first installment payment on December 31, 2021.4. Prepare the journal entry for the third installment payment on December 31, 2023.FinanceCo lent $8 million to Corbin Construction on January 1, 2018, to construct a playground. Corbin signed athree-year, 6% installment note to be paid in three equal payments at the end of each year.Required:1. Prepare the journal entry for FinanceCo’s lending the funds on January 1, 2018.2. Prepare an amortization schedule for the three-year term of the installment note.3. Prepare the journal entry for the first installment payment on December 31, 2018.4. Prepare the journal entry for the third installment payment on December 31, 2020.Sarasota purchased a new piece of equipment to be used in its new facility. The $416,000 piece of equipment was purchased with a $49,000 down payment and with cash received through the issuance of a $367,000, 6%, 5-year mortgage payable issued on January 1, 2022. The terms provide for annual installment payments of $87,125 on December 31. (a) Prepare an installment payments schedule for the five payments of the notes payable. (Round answers to O decimal places, e.g. 15,250.) nual erest Cash Payment Interest Expense Reduction of Principal Principal Balanc riod sue $ ate 1 $ $ 2 3 4 5 %24 %24 %24
- Required information [The following information applies to the questions displayed below.] On January 1, 2024, Howell Enterprises purchases a building for $217,000, paying $47,000 down and borrowing the remaining $170,000, signing a 7%, 10-year mortgage. Installment payments of $1,973.84 are due at the end of each month, with the first payment due on January 31, 2024. 4. Total payments over the 10 years are $236,861 ($1,973.84 x 120 monthly payments). How much of this is interest expense and how much is actual payment of the loan? (Round your final answers to the nearest whole dollar amount.) Interest expense Actual payments on the loanRequired information [The following information applies to the questions displayed below.] On January 1, 2024, Howell Enterprises purchases a building for $250,000, paying $50,000 down and borrowing the remaining $200,000, signing a 8%, 10-year mortgage. Installment payments of $2,426.55 are due at the end of each month, with the first payment due on January 31, 2024. 2. Complete the first three rows of an amortization schedule. (Do not round intermediate calculations. Round your final answers to 2 decimal places.) Date 1/1/2024 1/31/2024 2/29/2024 Cash Paid Interest Expense Change in Carrying Value Carrying ValueOn January 1, 2021, Beaver Tours financed the purchase of a new building by borrowing $600,000 from the bank using a 30-year, 6% note payable. Payments of $3,597.30 are due at the end of each month, with the first installment due on January 31, 2021. Record the issuance of the note payable and the first monthly payment.