apter 14- HOMEWORK-p1,2,5,6,10811 Help Save & Exit Subm Check mny work Problem 1

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apter 14- HOMEWORK-p1,2,5,6,10811 Help Save & Exit Subm Check mny work Problem 14-6A Installment notes LO C1 On mber 1, 2017 borrows $570,000 cash from a bank by signing a five-year installment note bearing 6% interest. The note requires equal payments of $135,315 each year on October 31. CTable B.1. Table B.2. Table B.3 and Table B.4) (Use appropriate factor(s) from the tables provided.) Required: 1. Complete an amortization table for this installment note 2. Prepare the journal entries in which Norwood records the following: (a) Accrued interest as of December 31, 2017 (the end of its annual reporting period) (b) The first annual payment on the note. Complete this question by entering your answers in the tabs below Req 1Req 2A and 2B Complete an a ization table for this installment note. (Round your i riod Ending Date Ending + Debit Notes Credit Cash Balance Expense 10/31/2018 K Prex 7 f 16 Next> MacBook Pro

Explanation / Answer

Solution 1:

Solution 2:

Amortization table - Installment Note Period ending date Beginning balance Debit Interest expense Debit notes payable Credit Cash Ending balance 31-Oct-18 $570,000 $34,200 $101,115 $135,315 $468,885 31-Oct-19 $468,885 $28,133 $107,182 $135,315 $361,703 31-Oct-20 $361,703 $21,702 $113,613 $135,315 $248,090 31-Oct-21 $248,090 $14,885 $120,430 $135,315 $127,661 31-Oct-22 $127,661 $7,654 $127,661 $135,315 $0

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