Tim's Brewery needs to finance its newest expansion, so on January 1 he gets a 5-year, $100,000 loan through his bank. The note terms include a 10% APR and monthly payments of $2,125. Prepare an amortization schedule showing the principal and interest in each payment for the first six months of Tim's note.
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- On September 1, 2018, Speedy Lube signed a 30-year, $1,080,000 mortgage note payable to Jonstown Bank and Trust in conjunction with the purchase of a building and land. The mortgage note calls for interest at an annual rate of 12 percent (1 percent per month). The note is fully amortizing over a period of 360 months. The bank sent Speedy Lube an amortization table showing the allocation of monthly payments between interest and principal over the life of the loan. A small part of this amortization table is illustrated below. (For convenience, amounts have been rounded to the nearest dollar.) AMORTIZATION TABLE (12%, 30-YEAR MORTGAGE NOTE PAYABLE FOR $1,080,000; PAYABLE IN 360 MONTHLY INSTALLMENTS OF $11,110) InterestPeriod PaymentDate MonthlyPayment InterestExpense PrincipalReduction UnpaidBalance Issue date Sept. 1, 2018 – – – $ 1,080,000 1 Oct. 1 $ 11,110 $ 10,800 $ 310 1,079,690 2 Nov. 1 11,110 10,797 313…Zoey signs a note to repay $10,000.00 plus 8% interest in 1 year. Four months before the note is due, the debt is commuted into 3 equal payments. The first payment is due immediately and the 2nd and 3rd payment are due 4 and 12 months from the date of commutation. The interest rate is set at 9% and the focal date 4 months from the date of commutation. Calculate the amount of the new payments.Jim Hopper plans to place his money in a certificate of deposit that matures in three months. The principal is $12,000 and 5% interest is earned annually. How much interest he will earn in those three months?
- The Corner Bar & Grill is in the process of taking a 5-year loan of $50,000with First Community Bank. The bank offers the restaurant owner the following:Pay five equal payments at the end of each year inclusive of interest and part ofthe principal. Calculate the schedule of payments if APR is 10%.John Adams borrowed $25,000 at a 10% annual interest rate for a vehicle purchase from First State Bank. This loan is to be repaid over a three-year time-frame. The loan will be amortized in three equal, end-of-year payments Calculate the annual, end-of-year loan payment that John will make each year. Calculate the amount of “Interest Expense” that will be paid in the first year that this loan is outstanding.On January 1, 2024, Tropical Paradise borrows $39,000 by agreeing to a 6%, four-year note with the bank. The funds will be used to purchase a new BMW convertible for use in promoting resort properties to potential customers. Loan payments of $915.92 are due at the end of each month, with the first installment due on January 31, 2024. Required: Record the issuance of the installment note payable and the first two monthly payments. Note: Do not round intermediate calculations. Round your final answers to 2 decimal places. If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. View transaction list Journal entry worksheet Record the issuance of a note payable. Note: Enter debits before credits. Date January 01, 2024 Cash General Journal Notes Payable Debit 50,000.00 Credit 50,000.00
- Jonathan wishes to borrow $180 000 from a commercial bank. He was told that the loan would be amortized over five years and that payment could be made at the beginning or at the end of each year. Please assist Jonathan by answering the following questions. a. Explain to Jonathan, what is the purpose of a loan amortization schedule? b. Jonathan borrows $180 000 at 9% per annum for five years. The loan is repayable in five equal instalments at the beginning of the year. What is the annual payment?To help purchase his new minivan, Eric is taking out a $17,000 amortized loan for 6 years at 5.9% annual interest. His monthly payment for this loan is $280.94. Fill in all the blanks in the amortization schedule for the loan. Assume that each month is of a year. Round your answers to the nearest cent. 12 Payment number 1 2 1 40 41 Interest payment $0 $0 $41.98 Principal payment $0 $0 $238.96 $0 New loan balance $0 $16,604.31 $8299.52 $Zetix borrowed $20,000 on a one-year, 10 percent note payable from the local bank on March 1. Interest was paid quarterly, and the note was repaid one year from the time the money was borrowed. Calculate the amount of cash payments Zetix was required to make in each of the two calendar years that were affected by the note payable assuming accounting period ends on Dec. 31 each year.
- To vacation with his family, Mr. Velasco obtains a loan of $60,000 to be paid in 7 monthly installments with an annual interest rate of 13% compounded by months. Prepare the amortization table.ABC bank loans $250,000 to Yossarian to purchase a new home. Yossarian will repay the note in equal monthly payments over a period of 30 years. The interest rate is 12 percent. Required: If the monthly payment is $2,571.53, how much of the first payment is interest expense, and how much is principal repayment?\On September 1, 2024, Lindsey Engineering borrows $414,000 cash. The loan is made by Firstlending, under the agreement that Lindsey will repay the principal with four payments of $103,500. Payments are due by October 1 each year, with the first payment being due October 1, 2025 (next year). Interest on the borrowing is 6%, and Lindsey's year end is December 31. 1. Record the long-term note payable by Lindsey Engineering. 2. RECORD the adjusting entry for interest on December 31, 2024. 3. Record the entry to reclassify the current portion of the note on December 31, 2024.