Tonys favorte memories of his childhood were the times he spent wh his dad at ca

Question

Tonys favorte memories of his childhood were the times he spent wh his dad at camp. Tony was daydreaming of those days a br as he and Suzie jogged along a nature trail and came across a wonderful plece of property for sale. He turned to Suzie and sald, 1 start a camp where tamiles could get away and spend some quality tme together. It we ust had the money. I ow this would be the perfect place. They called several banks and on January 1 2020. Great Adventures obtained a s580 000 6%, 8-year Installmen Bank. Payments of $7,622 are required at the end of each month over the life of the 8-year loan. Each monthly payment of $7,622 includes both interest expense and principal payments (ie, reduction of the loan amount) Late that night Tony exclaimed, $580,000 tor our new camp, this has to be the best news ever. Suzie snuggled close and sald, "Theres something else I need to tell you, Tony, I'm expectingl They decided right then, it it was a boy, they would name him Ventur Required 1. Complete the first three rows of an amortization table e in Carrying Value Catying Date Cash Paid /2020 01/31/2020 02/28/2020 2. Record the note payable on January 1, 2020, and the frst two payments on January 31, 2020, and February 28, 202D. (f no entry is required for a particular transaction, select "No Jounal entry required" in the first account field.) View transaction list Journal entry worksheet Record the monthly payment Note: Enter debits before credits. Date Debit Credit February 28, 2020

Explanation / Answer

1 Date Cash paid Interest expense Decrease in carrying value Carrying value 01-01-2020 580000 01-31-2020 7622 2900 4722 575278 02-28-2020 7622 2876 4746 570532 2 Feb-28 Interest expense 2876 Notes payable 4746         Cash 7622

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