On January 1, 2023, 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, 2023

2. December 31, 2024

Transcribed Image Text:

Year Annual Payment Principal Portion of Payment Interest Portion of Payment Principal Balance at Year-End 2023 $23,141 $3,360 $64,219 $19,781 20,572 2024 23,141 2,569 43,647 21,395 1,746 22,252 22,252 889 -0- 2025 23,141 2026 23,141