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Mike Williams Inc. signed a 4-year, installment note payable with Buffalo Bank. The note was for $100,000, 12% annual interes

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rate positively .. let me know if you need any clarification..

i ii=i*1% iii iv=iii-ii v=i-iv
Period Beginning balance Interest Installment Principal component Cosing balance
0        100,000
1        100,000                               1,000            2,633              1,633          98,367
2          98,367                                  984            2,633              1,649          96,718
3          96,718                                  967            2,633              1,666          95,052
Therefore, 3rd payment include 1666 of principal amount and 967 of interest  
Journal entry
Period Account Debit Credit
                  3 Interest expenses                 967
Notes payable              1,666
cash            2,633
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