Exercise 10-2A (Algo) Amortization schedule for an installment note LO 10-1

On January 1, Year 1, Beatie Company borrowed $270,000 cash from Central Bank by issuing a five-year, 5 percent note. The principal and interest are to be paid by making annual payments in the amount of $62,363. Payments are to be made December 31 of each year, beginning December 31, Year 1.

Required Prepare an amortization schedule for the interest and principal payments for the five-year period. (Round your answers to the nearest dollar amount.)

Singer Company has a line of credit with United Bank. Singer can borrow up to $491,000 at any time over the course of the Year 1 calendar year. The following table shows the prime rate expressed as an annual percentage along with the amounts borrowed and repaid during the first three months of Year 1. Singer agreed to pay interest at an annual rate equal to 2.50 percent above the bank's prime rate. Funds are borrowed or repaid on the first day of each month. Interest is payable in cash on the last day of the month. The interest rate is applied to the outstanding monthly balance. For example, Singer pays 6.00 percent ( 3.50 percent + 2.50 percent) annual interest on $82,700 for the month of January. Required Provide all journal entries pertaining to Singer's line of credit for the first three months of Year 1 . (Round your final answers to the nearest dollar amount. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)