Problem 10-12A (Part Level Submission) Laverne purchased a new piece of equipmen

Question

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) Your answer is correct. Prepare an installment payments schedule for the first five payments of the notes payable. (Round answers to 0 decimal places, e.g. 125.) Annual Interest Period Issue Date Cash Payment Reduction of Principal Interest Expense Principal Balance 400,500.00 95,077.00 95,077.00 95,077.00 24,030.00 19,767.18 15,248.59 10,458.89 5,381.80 71,047.00 75,309.82 79,828.41 84,618.11 89,695.20 329,453.00 254,143.18 174,314.77 89,696.66 4 95,077.00 95,077.00 1.46 Amount may be off due to rounding SHOW LIST OF ACCOUNTS SHOW SOLUTION LINK TO TEXT LINK TO TEXT

Explanation / Answer

C. Balance sheet( partial):

Current liabilities: Mortgage payable $75,309.82 Long term liabilities: Mortgage payable(329,453-75,309.82) $254,143.18 Total liabilities 329,453

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