154. On January 1, 2013, a company borrowed $50,000 cash by signing a 7% installment note that is to be repaid in five annual end-of-year payments of $7,189. The first payment is due on December 31, 2013. Prepare the general journal entries to record the first and second installment payments.
155. A company purchased two new trucks for a total of $250,000 on January 1, 2013. The company paid $40,000 cash and gave a $210,000, three-year, 8% note for the remaining balance. The note is to be paid in three annual end-of-year payments beginning December 31, 2013. Assume the annual installment payments are to consist of equal amounts of principal plus accrued interest. Prepare a note amortization table using the format below.
Period Ending Date
|
Beginning Balance
|
Debit Interest Expense
|
Debit Notes Payable
|
Credit Cash
|
Ending Balance
|
12/31/13
|
|
|
|
|
|
12/31/14
|
|
|
|
|
|
12/31/15
|
|
|
|
|
|
156. A company purchased two new delivery vans for a total of $250,000 on January 1, 2013. The company paid $40,000 cash and signed a $210,000, three-year, 8% note for the remaining balance. The note is to be paid in three annual end-of-year payments of $81,487 each, with the first payment on December 31, 2013. Each payment includes interest on the unpaid balance plus principal.
(1) Prepare a note amortization table using the format below:
Period Ending Date
|
Beginning Balance
|
Debit Interest Expense
|
Debit Notes Payable
|
Credit Cash
|
Ending Balance
|
12/31/13
|
|
|
|
|
|
12/31/14
|
|
|
|
|
|
12/31/15
|
|
|
|
|
|
(2) Prepare the general journal entries to record the purchase of the vans on January 1, 2013 and the second annual installment payment on December 31, 2014.