Welton Corporation's installment note that has original principal of $26,000, interest of 5% compounded annually, and a term of 3 years. Welton Corporation established the note on the first day of its fiscal year and will fully repay the note by the end of year 3 on its December 31 fiscal year-end. Prepare Welton Corporation's journal entries on (a) January 1, Year 1; (b) December 31, Year 1; (c) December 31, Year 2; and (d) December 31, Year 3. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations. Round your final answers to the nearest dollar amount.) No 1 2 | | 3 4 Transaction (a) (b) (c) (d) Answer is not complete. General Journal Cash Notes Payable (long-term) Interest Expense Notes Payable (long-term) Cash Interest Expense Notes Payable (long-term) Cash Interest Expense Notes Payable (long-term) Cash >> 333 >>> >>> ✓ ✓ Debit 26,000 1,300 > 1,303 x 26,065 x Credit 26,000 26,000 X 27,300 X 26,000 X 3 x 26,000 X 25,703 X

Welton Corporation's installment note that has original principal of $26,000, interest of 5% compounded annually, and a term of 3 years. Welton Corporation established the note on the first day of its fiscal year and will fully repay the note by the end of year 3 on its December 31 fiscal year-end. Prepare Welton Corporation's journal entries on (a) January 1, Year 1; (b) December 31, Year 1; (c) December 31, Year 2; and (d) December 31, Year 3. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations. Round your final answers to the nearest dollar amount.) No 1 2 | | 3 4 Transaction (a) (b) (c) (d) Answer is not complete. General Journal Cash Notes Payable (long-term) Interest Expense Notes Payable (long-term) Cash Interest Expense Notes Payable (long-term) Cash Interest Expense Notes Payable (long-term) Cash >> 333 >>> >>> ✓ ✓ Debit 26,000 1,300 > 1,303 x 26,065 x Credit 26,000 26,000 X 27,300 X 26,000 X 3 x 26,000 X 25,703 X

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

ChapterMB: Model-building Problems

Section: Chapter Questions

Problem 13M

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