A Company Purchased Two New Delivery Vans for a Total

question 137

Essay

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:
$$\begin{array} { | c | c | c | c | c | c | } \hline \begin{array} { c } \text { Period } \\\text { Ending Date }\end{array} & \begin{array} { c } \text { Beginning } \\\text { Balance }\end{array} & \begin{array} { c } \text { Debit Interest } \\\text { Expense }\end{array} & \begin{array} { c } \text { Debit Notes } \\\text { Payable }\end{array} & \text { Credit Cash } & \begin{array} { c } \text { Ending } \\\text { Balance }\end{array} \\\hline 12 / 31 / 13 & & & & & \\\hline 12 / 3 / 14 & & & & & \\\hline 12 / 31 / 15 & & & & & \\\hline\end{array}$$
(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.

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Definitions:

Mergers And Acquisitions

The process through which companies consolidate their assets through the purchase, takeover, or merging of other businesses.

PR Role

The functions and responsibilities of public relations professionals, including managing communications and relationships between organizations and their publics.

Internal Communications

The function responsible for effective communication among members within an organization.

PR Campaign

A strategic communication effort aimed at influencing public opinion or promoting specific products, services, or ideas through various media channels.