On December 31, 2023, KEC Environmental Corp. borrowed $100,000 by signing a four-year, 5% installment note. The
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On December 31, 2023, 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 2024 through 2027.
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 14.20.
Transcribed Image Text:
Period Ending Dec. 31/23 Dec. 31/24 Dec. 31/25 (A) Beginning Balance Prior (E) (B) Debit Interest Expense 8% x (A) (C) Debit Notes Payable (D)-(B) (D) Credit Cash (B) + (C) $23,282 $4,800 3,321 23,282 23,282 1,725 $9,846 $69,846 $60,000 41,518 21,557 $18,482 19,961 21,557 $60,000 (E) Ending Balance (A)-(C) $41,518 21,557 -0-
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Related Book For
Fundamental Accounting Principles Volume 2
ISBN: 9781260881332
17th Canadian Edition
Authors: Kermit D. Larson, Heidi Dieckmann, John Harris
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