The following instalment payment schedule is for an instalment note payable:

Instructions

a. Is this a fixed principal or blended payment schedule?

b. What is the interest rate on the note?

c. What is the maturity date on the note?

d. Prepare the journal entry to record the first instalment payment.

e. What are the non-current and current portions of the note after the second payment?

Transcribed Image Text:

Reduction Principal Interest Period Cash Payment Interest Expense of Principal Jan. 1, 2021 July 1, 2021 Jan. 1, 2022 July 1, 2022 Jan. 1, 2023 Balance $28,710 $6,960 $174,000 152,250 $21,750 27,840 26,970 26,100 6,090 130,500 108,750 5,220 4,350 21,750 21,750 87,000