Georgia Company borrowed $600,000 from a bank on May 1, 2004. The bank required a return of

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Georgia Company borrowed $600,000 from a bank on May 1, 2004. The bank required a return of 12% on the loan. The loan is to be repaid over 12 months in equal installments. Georgia Company’s fiscal year ends on December 31.

Required

A. Prepare an amortization table for the loan for the 12-month period.

B. How much interest expense would Georgia report on the loan for its 2004 fiscal year?

C. How much interest expense would it report for 2005?

D. What amount of liability would Georgia report for the loan at the end of 2004?

E. What amount would it report at the end of 2005?

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Financial Accounting Information For Decisions

ISBN: 978-0324672701

6th Edition

Authors: Robert w Ingram, Thomas L Albright

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Question Posted: Jun 20, 2012 06:22 AM

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Georgia Company borrowed $600,000 from a bank on May 1, 2004. The bank required a return of

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A The amortization table is based on required monthly payments of 5330926 as determined below PVA Pa...View the full answer

Financial Accounting Information For Decisions

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