Question

On November 1, 2017. Norwood borrows $530,000 cash from a bank by signing a five-year installment note bearing 5% interest. The note requires equal payments of $122.416 each year on October 31 Table B.1. Table B2 Table 8.3. and Table 8.4 (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. look Complete this question by entering your answers in the tabs below. Req 1 Reg 2A and 28 ferences Complete an amortization table for this installment note. (Round your intermediate calculations to the nearest dollar amount.) Period Ending Date Debit interest Beginning Balance Debit Notes Payable Credit Cash Ending Balance Expense 10/31/2018 10/31/2019 10/31/2020 10/31/2021 10/31/2022 Total Reg 2A and 28 ) < Prey 4 of 5 !!! Next >

Answer 1

Page No O O Amoortiz dtion fable for insdballment note closing balance f pocvious year balance Byining balance. 5%. X Beginning Delit interesf expense debit interest expense Debits note payable Coredit cash $ 122,416 Conedit cash Debit note payable cloning balance balance Beginning Period ending Beginning Debit intenest| debit note Coredit claing balane balance payable date cash €zpense t0/31/18. 530000 $ 26500 4 95916 $12241G 4434084 10131/19 $434084 $ 21704 Flo07la $122416 4333,372 10/31/20 $ 333,340 $ 1669 $105 147 $122416 $221,625 $324,6a5| 138 | 10/31/21 $ 111,035 $i22416 $ 116590 10 /31|22 $116586 $12241G $0 $.82084 $529996 $612080 $11671 $ 116590 $ 58 30 $ 16416 ). Total Jounal entries As at 1al3 |14 inter est accrueo Interest on Novito dec 3) 2 mohths not payable = 26500x (ka)

NO £9•9144 $ The finaf annual payment an the nofe Saterest nofe $ 26500 payable on Inpfallment on note payable १5१।6 to banh 26500 + 95916 $ 122416 Account title SNO Debit Coedit note payable Interef $ 4416.67 on To note payjable $4416-64 00 nteres on note payabe alc $ 26500 Snfallment on note payable alc $ 95916 $122416 To bank ale.