On January 1, 2017, Eagle borrows $35,000 cash by signing a four-year, 7% instal

Question

On January 1, 2017, Eagle borrows $35,000 cash by signing a four-year, 7% installment note. The note requires four equal payments of $10,333, consisting of accrued interest and principal on December 31 of each year from 2017 through 2020·(Table B.1, Table B.2, Table B.3, and Table B.4) (Use appropriate factor(s) from the tables provided.) Prepare an amortization table for this installment note. Payments Period Debit Debit Ending Beginning Interest Notes Credit Ending Date 2017 2018 2019 2020 Total Balance Expense Payable Cash Balance

Explanation / Answer

Amortization Table :

Period Ending Beginning Balance Debit Interest Expense Debit Note Payable Credit Cash Ending Balance $ $ $ $ $ December 31, 2017 35,000 2,450 7,883 10,333 27,117 December 31, 2018 27,117 1,898 8,435 10,333 18,682 December 31, 2019 18,682 1,308 9,025 10,333 9,657 December 31, 2020 9,657 676 9,657 10,333 0 Total 6,332 35,000 41,332

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