Question: On October 1 st , Brookster Inc. signed a 4-year, $100,000 note payable to a local bank to purchase new equipment. The note calls for

On October 1st, Brookster Inc. signed a 4-year, $100,000 note payable to a local bank to purchase new equipment. The note calls for interest at an annual rate of 12 percent. Below is a portion of the amortization table:

Amortization Table

(12%, 4-year Note Payable for $100,000; Payable in 48 Monthly Installments of $2,633)

Interest Period

Payment Date

Monthly Payment

Interest Expense

Principal Reduction

Unpaid Balance

Issue Date

Oct. 1

--------

--------

--------

$100,000

1

Nov. 1

$2,633

$1,000

$1,633

$ 98,367

2

Dec. 1

$2,633

$984

$1649

$ 96,718

3

Jan. 1

4

Feb. 1

Required: Complete the amortization table.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!