Answer:
Loan amount = $184,193.95
Explanation:
Interest will remain same each year. Interest per year = 200,000*10% = $20,000
Installment $21,215.85
Less: Interest <u>$20,000</u>
Payment to Principal <u>$1,215.85</u>
Total principal repaid in 13 years = $1,215.85 * 13 years = $15,806.05
So, the principal left = $200,000 - $15,806.05 = $184,193.95
Answer:
Entry for the repayment involve a Debit of Note Payable of $1,060 and a Credit of Cash of $1,060.
Explanation:
By January 30 , 2 months interest would have expired and the journal entries are as follows :
December 31
Interest expense $30 (debit)
Note Payable $30 (credit)
January 30
Interest expense $30 (debit)
Note Payable $30 (credit)
Thus the <em>repayment will be at the carrying cost </em>of the note payable as follows :
Note Payable $1,060 (debit)
Cash $1,060 (credit)
Conclusion :
Entry for the repayment involve a Debit of Note Payable of $1,060 and a credit of Cash of $1,060.
Answer:
2. $3600
Explanation:
The computation of the depreciation expense under the Straight-line method: is shown below:
= (Purchase value of computer equipment - residual value) ÷ (estimated useful life)
= ($19,200 - $0) ÷ (4 years)
= ($19,200) ÷ (4 years)
= $4,800
The depreciation that is calculated above is on yearly basis. But on monthly basis, the depreciation should be calculated from January 1, 2012 to September 30, 2012 i.e for 9 months
So, the depreciation would be
= $4,800 × 9 months ÷ 12 months
= $3,600
We assume the deprecation is calculated on the straight-line method
