Homework Answers
| Note Repayment Schedule | |||||||
| Year | Opening balance | Interest | Installment | Principal Repayment | Closing Balance | ||
| a | b | c | d | e=d-c | f=b+c-d | ||
| 2018 | $ 15,000 | $ 1,050 | $ 4,428 | $ 3,378 | $ 11,622 | ||
| 2019 | $ 11,622 | $ 813 | $ 4,428 | $ 3,615 | $ 8,007 | ||
| 2020 | $ 8,007 | $ 560 | $ 4,428 | $ 3,868 | $ 4,139 | ||
| 2021 | $ 4,139 | $ 289 | $ 4,428 | $ 4,139 | $ - | ||
| Journal Entries | |||||||
| Date | General Journal | Debit | Credit | ||||
| January 1,2018 | Cash | $ 15,000 | |||||
| Note Payable | $ 15,000 | ||||||
| (to record borrow of money) | |||||||
| December31,2018 | Interest Expenses | 1050 | |||||
| Note Payable | 3378 | ||||||
| cash | 4428 | ||||||
| (repayment of interest & principal) | |||||||
| December31,2019 | Interest Expenses | 813 | |||||
| Note Payable | 3615 | ||||||
| cash | 4428 | ||||||
| (repayment of interest & principal) | |||||||
| December31,2020 | Interest Expenses | 560 | |||||
| Note Payable | 3868 | ||||||
| cash | 4428 | ||||||
| (repayment of interest & principal) | |||||||
| December31,2021 | Interest Expenses | 289 | |||||
| Note Payable | 4139 | ||||||
| cash | 4428 | ||||||
| (repayment of interest & principal) | |||||||
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