Question I! (of 1) 0.50 points On November 1, 2015, Norwood borrows $570,000 cas

Question

Question I! (of 1) 0.50 points On November 1, 2015, Norwood borrows $570,000 cash from a bank by signing a five-year installment note bearing 6% interest The note requires equal total payments each yearon October 31 dable Bi Table B2. Table B.3 and Table B.4) (Use appropriate factors) from the tables provided.) Required: 1. Complete the below table to calculate the total amount of each installment payment Amount of annual Initial Cash PV Facior S 570,000 + 2. Complete an amortization table for this instaliment note (Round your intermediate calculations to the nearest dollar amount Ending Beginning Debit Interest +Debit Notes Date Expense PayableCredit Cash Ending 10312016 570 000 10312016 S 570 000

Explanation / Answer

Answer:1

Answer:2

Answer:3(a) 31 dec 2015

Interest expenses a/c Dr. $5700

     To interest payable A/C         $5700

31 oct 2016     Interest expenses a/c Dr $28500

                       interest payable A/C Dr. 5700

                       Notes payable A/c Dr. 101115

                           To cash A/C                           $135315

Intial cash proceeds / PV factor = Amount of annual payments $570,000 / 4.2124 = $135,314.78

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