Cucina Corp. signed a new installment note on January 1, 2018,and deposited the proceeds of $51,000 in its bank account. The notehas a 3-year term, compounds 6 percent interest annually, andrequires an annual installment payment on December 31. Cucina Corp.has a December 31 year-end and adjusts its accounts only atyear-end
- Use an online application, such as the loan calculator withannual payments at mycalculators.com, to generate an amortizationschedule. Enter that information into an amortization schedule withthe following headings: Year, Beginning Notes Payable, InterestExpense, Repaid Principal on Notes Payable, and Ending NotesPayable.
- Prepare the journal entries on (a) January 1, 2018, andDecember 31 of (b) 2018, (c) 2019, and (d) 2020.
- If Cucina Corp.’s year-end were March 31, rather than December31, prepare the adjusting journal entry would it make for this noteon March 31, 2018?
