On January 1, 2020, La Petite Macaron, a local French bakery, borrowed $84,000 from the bank. Interest is calculated at the rate of 4% and the term of the note is four years. Four equal annual payments will be made in the amount of $23,141 each December 31. The payment schedule is shown below:

Show how La Petite Macaron will show the note on its year-end balance sheet:

1. December 31, 2020

2. December 31, 2021

Transcribed Image Text:

Principal Portion of Principal Balance at Year-End Interest Portion of Annual Year Payment $23,141 23,141 23,141 23,141 Payment Payment $3,360 2,569 1,746 889 2020 $19,781 20,572 21,395 22,252 $64,219 43,647 22,252 2021 2022 2023 -0-