On November 1, 2015, Norwood borrows S200,000 cash from a bank by signing a five

Question

On November 1, 2015, Norwood borrows S200,000 cash from a bank by signing a five-year installment note bearing 8% interest. The note requires equal total payments each year on October 31. (Table B.1. Table B.2. Table B.3. and Table B.4) (Use appropriate factor(s) from the tables provided.) Complete the below table to calculate the total amount of each installment payment. (Round all table values to 4 decimal places, and other answers to nearest whole dollar.) Complete an amortization table for this installment note. (Round your intermediate calculations to the nearest dollar amount.)

Explanation / Answer

Period ending date Beginning Balance (A *.08) Debit interest expense Debit note payable (B) credit cash Ending Balance (A-B) 10/31/2016 200000 16000    [200000*.08] 34091    [50091-16000] 50091 165909   [200000-34091] 10/31/2017 165909 13273   [165909*.08] 36818    [50091-13273] 50091 129091    [165909-36818] 10/31/2018 129091 10327    [129091*.08] 39764    [50091-10327] 50091 89327 10/31/2019 89327 7146 42945   [50091-7146] 50091 46382 10/31/2020 46382 3709 46382 50091 0 Total 50455 200000 250455

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