Examlex

Solved

On January 1,2018,Belview,Inc

question 149

Essay

On January 1,2018,Belview,Inc.issued long-term notes payable for $50,000.The note will be paid over 10 years with payments of $5,000 plus 12% interest due each January 1,beginning January 1,2019.The amortization schedule for the first three payments is provided.Prepare the journal entries for the issuance of the note and for the January 1,2020 note payment.Omit explanation.
 Beginning  Balance  Principal  Payment  Interest  Expense  Total  Payment  Ending  Balance p1/01/2018$50,000p1/01/2019$50,000$5,000$6,000$11,00045,000p1/01/202045,0005,0005,40010,40040,000p1/01/202140,0005,0004,8009,80035,000\begin{array} { | l | r | r | r | r | r | } \hline & \begin{array} { c } \text { Beginning } \\\text { Balance }\end{array} & \begin{array} { c } \text { Principal } \\\text { Payment }\end{array} & \begin{array} { c } \text { Interest } \\\text { Expense }\end{array} & \begin{array} { c } \text { Total } \\\text { Payment }\end{array} & \begin{array} { c } \text { Ending } \\\text { Balance }\end{array} \\\hline \mathrm { p } 1 / 01 / 2018 & & & & & \$ 50,000 \\\hline \mathrm { p } 1 / 01 / 2019 & \$ 50,000 & \$ 5,000 & \$ 6,000 & \$ 11,000 & 45,000 \\\hline \mathrm { p } 1 / 01 / 2020 & 45,000 & 5,000 & 5,400 & 10,400 & 40,000 \\\hline \mathrm { p } 1 / 01 / 2021 & 40,000 & 5,000 & 4,800 & 9,800 & 35,000 \\\hline\end{array}


Definitions:

Properly Sealed

Ensured that an item or document is closed or fastened securely, often implying it has been authenticated or officially completed.

Mistake Of Fact

Mistake as to the existence of the subject matter of a contract or the identity of a party.

Rescission

The act of revoking, cancelling, or annulling a contract, returning all parties to their positions prior to the agreement.

Franchise Contract

A legal agreement granting someone the right to operate a business under the franchisor's brand and business model.

Related Questions