Access an online loan calculator with annual payments, such as the one at mycalculators.com, to produce an amortization schedule for Welton Corp.’s installment note that has original principal of $55,000, interest of 10% compounded annually, and a term of 3 years.

Welton Corp. established the note on the first day of its fiscal year, and will fully repay the note by the end of year 3 on its December 31 fiscal year-end. Prepare Welton Corp.’s journal entries on 

(a) January 1, Year 1, 

(b) December 31, Year 1, 

(c) December 31, Year 2, 

(d) December 31, Year 3.

Answer rating: 100% (QA)

ANSWER c December 31 Year 2 Amortization schedules begin with the outstanding loan balance To arrive ... View the full answer