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Template E11 13

The company took out an $80,000 long-term note payable with annual interest of 12%. Journal entries were made to record the note payable, interest expense for the year, and payment of accrued interest. A schedule shows the note will be paid off in 8 annual installments of principal and interest.

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LakeishaM.Riley
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13 views

Template E11 13

The company took out an $80,000 long-term note payable with annual interest of 12%. Journal entries were made to record the note payable, interest expense for the year, and payment of accrued interest. A schedule shows the note will be paid off in 8 annual installments of principal and interest.

Uploaded by

LakeishaM.Riley
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Ref

ACCOUNT
Cash
LT Notes Payable

LT Notes Payable
CPLTD

Interest Expense (80000 X 0.12 X 12/12)


Accrued Interest Payable

DEBIT
CREDIT
80,000.00
80,000.00
10,000.00
10,000.00
9,600.00
9,600.00

Accrued Interest Payable


CPLTD
Cash

9,600.00
10,000.00

LT Notes Payable
CPLTD

10,000.00

Interest Expense (80000 X 0.12 X 12/12)


Accrued Interest Payable

19,600.00

10,000.00
8,400.00
8,400.00
$ 137,600.00

Accrued Interest Payable


CPLTD
Notes Payable
TOTAL LIABILITIES

8,400.00
10,000.00
60,000.00
78,400.00

$ 137,600.00
D

B
E

Pmt.
No.
1
2
3
4
5
6
7
8

Date
Total
mar 31/15
4/31/14
5/31/14
6/31/14
7/31/14
8/31/2014
9/31/14
10/31/2014

Payment
19,600.00
18,400.00
17,200.00
16,000.00
14,800.00
13,600.00
12,400.00
11,200.00
10,000.00

Interest Expense
(P X Rate x #
Mortgage
pmts / 12)
Principal
Balance
9,600.00
10,000.00
80,000.00
8,400.00
10,000.00
70,000.00
7,200.00
10,000.00
60,000.00
6,000.00
10,000.00
50,000.00
4,800.00
10,000.00
40,000.00
3,600.00
10,000.00
30,000.00
2,400.00
10,000.00
20,000.00
1,200.00
10,000.00
10,000.00
10,000.00
-

Accrued Interest Payable


9,600.00
9,600.00 C
8,400.00 F

8,400.00
CPLTD
10,000.00

10,000.00 B
10,000.00 E

10,000.00
Notes Payable
10,000.00
80,000.00 A
10,000.00

60,000.00

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