The following amortization schedule indicates the interest and principal that Chip’s Cookie Corporation (CCC) must repay on an installment note established January 1, 2018. CCC has a December 31 year-end and makes the required annual payments on December 31. Use the amortization schedule to determine 

(a) The amount of the (rounded) annual payment; 

(b) The amount of interest expense to report in the year ended December 31, 2018 (Year 1); 

(c) The note payable balance at January 1, 2021; and 

(d) the total interest and total principal paid over the note’s entire life.

Transcribed Image Text:

Repaid Principal on Note Payable Beginning Interest Ending Note Payable Year Note Payable Expense 1 6,960 30,000 23,040 1,500 23,040 15,732 15,732 1,152 7,308 8,059 787 7,673 4 8,059 8,059 401 Total 3,840 30,000