At the beginning of year 1, B Co. has a note payable of $72,000 that calls for

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At the beginning of year 1, B Co. has a note payable of $72,000 that calls for an annual payment of $16,246, which includes both principal and interest. If the interest rate is 8 percent, what is the amount of interest expense in year 1 and in year 2? What is the balance of the note at the end of year 2?

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Survey of Accounting

ISBN: 978-0073379555

2nd edition

Authors: Edmonds, old, Mcnair, Tsay

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