ACCOUNT- Grace Herron has just approached a venture capitalist for financing for
by ella | Aug 20, 2025 | Business
| Problem 10-13A Grace Herron has just approached a venture capitalist for financing for her new business venture, the development of a local ski hill. On July 1, 2013, Grace was loaned $251,000 at an annual interest rate of 6%. The loan is repayable over 5 years in annual installments of $59,586, principal and interest, due each June 30. The first payment is due June 30, 2014. Grace uses the effective-interest method for amortizing debt. Her ski hill company’s year-end will be June 30. |
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Prepare an amortization schedule for the 5 years, 2013–2018. (Round answers to 0 decimal places, e.g. 125.)
| Period |
Cash
Payment |
Interest
Expense |
Principal
Reduction |
Balance |
| July 1, 2013 |
$ |
$ |
$ |
$ |
| June 30, 2014 |
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| June 30, 2015 |
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| June 30, 2016 |
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| June 30, 2017 |
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| June 30, 2018 |
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* Amount may be off due to rounding.
| SHOW LIST OF ACCOUNTS |
| LINK TO TEXT |
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Prepare all journal entries for Grace Herron for the first 2 fiscal years ended June 30, 2014, and June 30, 2015. (Round answers to 0 decimal places, e.g. 125. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
| Date |
Account Titles and Explanation |
Debit |
Credit |
| July 1/13 |
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| June 30/14 |
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| June 30/15 |
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| SHOW LIST OF ACCOUNTS |
| LINK TO TEXT |
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Show the balance sheet presentation of the note payable as of June 30, 2015. (Hint: Be sure to distinguish between the current and long-term portions of the note.) (Round answers to 0 decimal places, e.g. 125.)
GRACE HERRON
Balance Sheet (Partial)
June 30, 2015 |
| Current AssetsCurrent LiabilitiesExpensesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentRevenuesStockholders’ EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal ExpensesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders’ EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal RevenuesTotal Stockholders’ Equity |
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$ |
| Current AssetsCurrent LiabilitiesExpensesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentRevenuesStockholders’ EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal ExpensesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders’ EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal RevenuesTotal Stockholders’ Equity |
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$
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