Question

Exercise 10-12 Installment note amortization table LO C1 On January 1, 2019, Eagle Company borrows $32,000 cash by signinga 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.) Payments (A) (B) (C) (D) (E) Period Ending Date Beginning Balance Debit Interest Expense Debit Notes Credit Ending Balance Payable Cash 2019 2020 es 2021 2022 Total

Answer 1

(c) (A) Period Ending date Beginning Balance 2019 $32,000 2020 $25,003 2021 $17,376 2022 $9,063 Payments (B) Debit Interest Expense $2,880 [$32000 x 9%] $2,250 [$25003 x 9%] $1,564 ($17376 x 9%] $814 $9063 x 9%] $7,508 (D) (E) Debit Notes Payable Credit Cash Ending Balance $6,997 ($9877-6997] $9,877 $25,003 $7,627 ($9877 - 7627] $9,877 $17,376 $8,313 ($9877-8313] $9,877 $9,063 $9,063 ($9877- 9063] $9,877 $32,000