Ultra Power, Inc. engaged in the following transactions related to long term liabilities during 2011:
a. On March 1, the company borrowed $50,000 for a machine. The loan is to be repaid in equal annual payments of $6,793 at the end of each of the next 10 years (beginning February 28, 2012); the interest rate is 6%
b. On October 1, the company borrowed $100,000 from the local credit union at an interst rate of 8%. The loan is for seven yhears, and Ultra power will make annual payments of $19,207 on September 30 of each year.
1. For each loan, prepare an amortization schedule for the first four payments. Show the reduction in principal and the interest expense for each payment.
2. What total interest explense related to these two loans would Ultra Power, Inc. Show on its income statement for the year ended December 31, 2011
3. How much interst payable would Ultra Power Inc, show on its balance sheet at December 31, 2011?
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more