Question

Connect Assignment: Chapter 10 i On November 1, 2019, Norwood borrows $560,000 cash from a bank by signing a five-year installment note bearing 9% interest. The note requires equal payments of $143,970 each year on October 31. points Required: 1. Complete an amortization table for this installment note. 2. Prepare the journal entries in which Norwood records the following: (a) Accrued interest as of December 31, 2019 (the end of its annual reporting period). (b) The first annual payment on the note. eBook Complete this question by entering your answers in the tabs below. Print Req 1 Req 2A and 2B References Complete an amortization table for this installment note. (Round your intermediate calculations to the nearest dollar amount.) Period Ending Date Beginning Balance Debit Interest Expense + Debit Notes Payable = Credit Cash Ending Balance 10/31/2020 10/31/2021 10/31/2022 10/31/2023 10/31/2024 Total Req 1 Req 2A and 2B>

Answer 1

1
Period ending date	Beginning Balance	Debit Interest expense	Debit Notes payable	Credit Cash	Ending Balance
10/31/2020	560000	50400	93570	143970	466430
10/31/2021	466430	41979	101991	143970	364439
10/31/2022	364439	32800	111170	143970	253269
10/31/2023	253269	22794	121176	143970	132093
10/31/2024	132093	11877	132093	143970	0
Total		159850	560000	719850
2
		Debit	Credit
Dec 31,2019	Interest expense	8400		=560000*9%*2/12
	Interest payable		8400
Oct 31,2020	Interest expense	42000		=560000*9%*10/12
	Interest payable	8400
	Notes payable	93570
	Cash		143970