Mezzelano Company was involved in a transaction in which a three-year note was exchanged. The note requires equal year-end payments. The accounting department prepared the following amortization table and sent you a copy. All amounts were rounded to the nearest dollar. Unfortunately, the copy machine malfunctioned, and none of the column headings are readable on your copy.

Required
A. Identify each of the missing column headings. Explain why each one must be as you identified it.
B. What is the principal amount of the note?
C. What is the interest rate of the note?
D. Is this an amortization table for a note receivable or a note payable? How can you tell?
Discuss.
E. At the end of year 2, what amount from this table will be reported on the income statement?
F. At the end of year 2, what amount from this table will be reported on the balance sheet?
G. At the end of year 2, what total amount from this table will be reported on the statement of cash flows (directapproach)?

Transcribed Image Text:

130,000 89,956 46,708 10,400 7,196 3,737 (iv) 50,444 50,444 50,444 40,044 43,248 46,708 (vi) 89,956 46,708 2 3