On January 1, 2018, Eagle Company borrows $100,000 cash by signing a four-year, 7% installment note. The
Question:
On January 1, 2018, Eagle Company borrows $100,000 cash by signing a four-year, 7% installment note. The note requires four equal payments of $29,523, consisting of accrued interest and principal on December 31 of each year from 2018 through 2021. Prepare an amortization table for this installment note like the one in Exhibit 10.12.
Transcribed Image Text:
Exhibit 10.12 Instalment Note: Equal Total Payments Amortization Schedule Payments (A) (B) (C) D) Credit (E) Debit Debit Perlod Interest Notes Ending Beglnning Expense Balance Cash Ending Payable (D) - (B) Balance 8% x (A) Date (computed) (A) – (C) $ 18,482 (1) 12/31/2018 (2) 12/31/2019. $60,000 $4,800 $23,282 $41,518 19,961 41,518 3,321 23,282 21,557 (3) 12/31/2020 21,557 1725 21,557 $60,000 23,282 $9,846 $69,846 Decreasing Accrued Interest Equal Cash Payments Increasing Principal Component Interest Principal 2018 $4,800 $18,482 2019 $3,321 $19,961 2020 $1,725 $21,557 $5,000 $15,000 $25,000 End of Year
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 55% (9 reviews)
Background given Amount of each payment Initial note balance Table B3 PV factor 100000 33872 29523 ...View the full answer
Answered By
Muhammad Umair
I have done job as Embedded System Engineer for just four months but after it i have decided to open my own lab and to work on projects that i can launch my own product in market. I work on different softwares like Proteus, Mikroc to program Embedded Systems. My basic work is on Embedded Systems. I have skills in Autocad, Proteus, C++, C programming and i love to share these skills to other to enhance my knowledge too.
3.50+
1+ Reviews
10+ Question Solved
Related Book For
Financial Accounting Information for Decisions
ISBN: 978-1259917042
9th edition
Authors: John J. Wild
Question Posted:
Students also viewed these Business questions
-
On January 1, 2019, Eagle Company borrows $100,000 cash by signing a four-year, 7% installment note. The note requires four equal payments of $29,523, consisting of accrued interest and principal on...
-
Use the information in Exercise 14-10 to prepare the journal entries for Eagle to record the loan on January 1, 2017, and each of the four payments from December 31, 2017, through December 31, 2020....
-
On January 1, 2011, Randa borrows $25,000 cash by signing a four-year, 7% installment note. The note requires four equal total payments of accrued interest and principal on December 31 of each year...
-
Concentric shells r = 20 cm and r = 30 cm are held at V = 0 and V = 50, respectively. If the space between them is filled with dielectric material ( = 3.10, a = 1012 S/m), find: (a) V, E, and D, (b)...
-
Explain how DNA methylation could be used to regulate gene expression in a tissue-specific way. When and where would de novo methylation occur, and when would demethylation occur? What would occur in...
-
Explain how an auditors preliminary assessment of materiality affects audit planning.
-
On February 16, 2005, Joseph and Margaret Buset borrowed $192,000 from Fremont Investment & Loan (the Originator). The loan was secured by a mortgage on a residential condominium. The mortgage named...
-
On January 1, 2012, the ledger of Kindt Company contained these liability accounts. Accounts Payable .........$42,500 Sales Taxes Payable .........6,600 Unearned Service Revenue .....19,000 During...
-
Calculate whether the given matrices are diagonalizable or not. That is, for each matrix, calculate its eigenvalues and associates eigenvectors, then write down the P and D matrices such that AP = PD...
-
Your brother has just started a new job as the Controller of an IESBA restricted audit client. You do not serve on the audit engagement. What steps must you take to ensure your independence is not...
-
Use the information in Exercise 10-10 to prepare the journal entries for Eagle to record the loan on January 1, 2018, and each of the four payments from December 31, 2018, through December 31, 2021....
-
Refer to the bond details in Problem 10-4A. Ellis Company issues 6.5%, five-year bonds dated January 1, 2018, with a $250,000 par value. The bonds pay interest on June 30 and December 31 and are...
-
A 50-Hz, two-pole, 750 kVA, 2300 V, three-phase synchronous machine has a synchronous reactance of 7.75 and achieves rated open-circuit terminal voltage at a field current of 120 A. a. Calculate the...
-
What is virtual vertical integration? How might this strategy lower healthcare costs and improve quality?
-
How does technological change affect a first mover?
-
What are the three essential components of a mission?
-
Why might a person or unit in charge of strategic planning also be assigned responsibility for public relations, communications, and business development?
-
What is the purpose of a vision?
-
The finance director of RM plc is considering several investment projects and has collected the following information about them. Projects D and E are mutually exclusive. The capital available for...
-
Use multiplication or division of power series to find the first three nonzero terms in the Maclaurin series for each function. y = e x2 cos x
-
Write a one-page memorandum to a prospective college student about salary expectations for graduates in business. Compare and contrast the expected salaries for accounting (including different...
-
Write a one-page memorandum to a prospective college student about salary expectations for graduates in business. Compare and contrast the expected salaries for accounting (including different...
-
Managerial accounting professionals follow a code of ethics. As a member of the Institute of Management Accountants, the managerial accountant must comply with Standards of Ethical Conduct. Required...
-
Yield to maturity The bond shown in the following table pays interest annually. (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a...
-
1. Given a function f(t) = t- t2 over the interval 0 t. (a) Sketch a graph for the above function in the interval -3 < t <3 (b) Determine half range cosine series expansion. (c) Hence deduce that, 1...
-
Consider the electric potential lines below. Identify a charge distribution that could cause these lines. Where is the voltage the greatest? Draw in the path that a positive test charge would take if...
Study smarter with the SolutionInn App