Question

On January 1, 2019, Eagle Company borrows $32,000 cash by signing a four-year, 9% installment note. The note requires four equal payments of $9,877, consisting of accrued interest and principal on December 31 of each year from 2019 through 2022.

Prepare an amortization table for this installment note. (Round all amounts to the nearest whole dollar.)

Answer 1

Answer:

Period Ending Date	Beginning Balance	Interest Expense @ 9%	Debit Notes Payable	Credit Cash	Ending Balance
	A	B	C=D-B	D	E =A-C
	($)	($)	($)	($)	($)
2019	32,000	2,880	6,997	9,877	25,003
2020	25,003	2,250	7,627	9,877	17,376
2021	17,376	1,564	8,313	9,877	9,063
2022	9,063	814	9,063	9,877	-
Total		7,508		39,508