Flounder Inc. developed a new sales gimmick to help sell its inventory of new automobiles. Because many new car buyers need financing, Flounder offered a low down payment and low car payments for the first year after purchase. It believes that this promotion will bring in some new buyers. On January 1, 2020, a customer purchased a new $28,200 automobile, making a down payment of $600.The customer signed a note indicating that the annual rate of interest would be 8% and that quarterly payments would be made over3 years. For the first year, Flounder required a $345 quarterly payment to be made on April 1, July 1, October 1, and January 1,2021. After this one-year period, the customer was required to make regular quarterly payments that would pay off the loan as of January 1, 2023.

Prepare a note amortization schedule for the first year. (Round answers to 0 decimal places, e.g.38,548.)

Date		Cash Paid		Interest Expense		Discount Amortized		Carrying Amount of Note
1/1/20		$		$		$		$
4/1/20
7/1/20
10/1/20
1/1/21

Indicate the amount the customer owes on the contract at the end of the first year. (Round answer to 0 decimal places, e.g. 38,548.)

The customer owes on the contract at the end of the first year

$

Compute the amount of the new quarterly payments. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places e.g. 58,971.)

The new quarterly payments

$

Prepare a note amortization schedule for these new payments for the next 2 years. (Round answers to 0 decimal places, e.g. 38,548.)

Date		Cash Paid		Interest Expense		Discount Amortized		Carrying Amount of Note
1/1/21		$		$		$		$
4/1/21
7/1/21
10/1/21
1/1/22
4/1/22
7/1/22
10/1/22
1/1/23

Answer rating: 100% (QA)

1 Amortization schdule for first year Date Cash Paid A Interest Expense B 8312 Discount Amortized ... View the full answer