On January 1, 2014, Landon Inc. borrowed $75,000 cash from Central Bank. The note was for four

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Question:

On January 1, 2014, Landon Inc. borrowed $75,000 cash from Central Bank. The note was for four years with a five percent interest rate. Annual payments totaling $21,150.89 include principal and interest. Payments are to be made on December 31 of each year, beginning December 31, 2014.

Required:

Prepare an amortization schedule for the interest and principal payments for the four-year period. Apply an amount of principal that results in Net Liability equal "0" in the last period.

Landon Inc.
Amortization Schedule
$75,000, 4-Yr. Term Note, 5% Interest Rate
Year	Prin. Bal. on Jan. 1	Cash Pay. Dec. 31	Applied to Interest	Applied to Principal	Prin. Bal. End of Period
2014
2015
2016
2017