Homework answers / question archive / Teal Mountain Farms Ltd

Teal Mountain Farms Ltd

Accounting

Share With

Teal Mountain Farms Ltd. needed financing to buy two John Deere tractors. Teal Mountain receives $290,000 on December 31, 2021, when it issues a 10-year, 7% note payable. The terms provide for semi-annual blended instalment payments on June 30 and December 31 in the amount of $20,405.00.

Prepare the journal entries to record the note payable and the first three instalment payments. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to 2 decimal places, e.g. 5,276.25.)
 

Provide the balance sheet disclosure for the note payable at December 31, 2022, being specific about the classifications. (Round answers to 0 decimal places, e.g. 5,275.)