On December 31, 2020, KEC Environmental Corp. borrowed $100,000 by signing a four-year, 5% installment note. The note requires four equal payments of accrued interest and principal on December 31 of each year from 2021 through 2024.

a. Calculate the size of each of the four equal payments.

b. Prepare an amortization table for this installment note like the one presented in Exhibit 14.19.

Exhibit 14.19

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(C) (A) (B) Debit (D) Credit (E) Debit Beginning Interest Notes Ending Cash Balance Expense 8% x (A) Payable Balance Prior (E) Period Ending (D) – (B) (B) + (C) (A) – (C) $60,000 $4,800 $18,482 $23,282 $41,518 Dec. 31/20.. Dec. 31/21. 23,282 21,557 41,518 3,321 19,961 21,557 Dec. 31/22 1,725 21,557 23,282 -0- $9,846 $60,000 $69,846 Increasing Principal Amounts Decreasing Accrued Interest Total Principal Payments Interest $1,725 2022 $21,557 2021 $19,961 $3,321 $18,482 $4,800 2020 $15,000 $20,000 $0 $5,000 $10,000 $25,000 Payment Pattern End of Year