On February 1, Willmar Corporation borrowed $100,000 from its bank by signing a 12 percent, 15-year note

Question:

On February 1, Willmar borrowed $100,000 from its bank by signing a 12 percent, 15-year note payable. The note calls for 180 monthly payments of $1,200. Each payment includes an interest and a principal component.
a. Compute the interest expense in February.
b. Compute the portion of Willmar's March 31 payment that will be applied to the principal of the note.
c. Compute the carrying value of the note on April 30 (round to the nearest dollar)?
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...