Question

On November 1, 2017, 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. (Table B.1, Table B.2, Table B.3, and Table B.4) (Use appropriate factor(s) from the tables provided.) 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, 2017 (the end of its annual reporting period) (b) The first annual payment on the note. Complete this question by entering your answers in the tabs below. Req 1 Req 2A and 2B Complete an amortization table for this installment note. (Round your intermediate calculations to the nearest dollar amount.) Period Ending Debit Notes Payable Debit Interest Beginning Balance Ending Balance = Credit Cash Date Expense 10/31/2018 10/31/2019 10/31/2020 10/31/2021 10/31/2022 Total

Answer 1

1
Period ending date	Beginning balance	Debit Interest expense	Debit Notes payable	Credit Cash	Ending balance
10/31/2018	560000	50400	93570	143970	466430
10/31/2019	466430	41979	101991	143970	364439
10/31/2020	364439	32800	111170	143970	253269
10/31/2021	253269	22794	121176	143970	132093
10/31/2022	132093	11877	132093	143970	0
Total		159850	560000	719850