Problem 10-12A (Part Level Submission) Laverne purchased a new piece of equipmen
ID: 2579562 • Letter: P
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Problem 10-12A (Part Level Submission) Laverne purchased a new piece of equipment to be used in its new facility. The $445,000 piece of equipment was purchased with a $44,500 down payment and with cash received through the issuance of a $400,500, 6%, 5-year mortgage payable issued on January 1, 2017. The terms provide for annual installment payments of $95,077 on December 31 (a) Prepare an installment payments schedule for the first five payments of the notes payable. (Round answers to 0 decimal places, e.g. 125.) Annual Cash Interest Expense Reduction of Principal Principal Balance Interest Period Payment Issue Date 4 Amount may be off due to rounding.Explanation / Answer
Dear Student Thank you for using Chegg Please find below the answer and please give thumbs up Statementshowing Computations Annual Interest Period Cash Payment Interest Expense Reduction of principal Principal balance Issue Date 44,500.00 400,500.00 1.00 95,077.00 24,030.00 71,047.00 329,453.00 2.00 95,077.00 19,767.18 75,309.82 254,143.18 3.00 95,077.00 15,248.59 79,828.41 174,314.77 4.00 95,077.00 10,458.89 84,618.11 89,696.66 5.00 95,077.00 5,381.80 89,695.20 1.46
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