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 |
Mike Williams Inc. signed a 4-year, installment note payable with Buffalo Bank. The note was for...
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1010-4 PROBLEM 10.4B preparation and Use of an Amortization Table pays 16 percent interest instead of the 10 percent rate changeu On October 1, 2018, Jenco signed a four-year. $100.000 note payable to Vicksburg State Bank in conjunction with the purchase of equipment. The note calls for interest at an annual rate of 12 per- cent (1 percent per month). The note is fully amortizing over a period of 48 months. The bank sent Jenco an amortization table showine the...