Question

ter 10 Homework 1 0 Saved On January 1, 2019, Eagle Company borrows $19,000 cash by signing a four year, 8% Installment note. The note requires four equal payments of $5.737, consisting of accrued interest and principal on December 31 of each year from 2019 through 2022 Prepare an amortization table for this installment note. (Round all amounts to the nearest whole dollar) Payments (B) (C) Debit Interest Debit Notes Expense Payable (A) Beginning Balance E) (D) Credit Ending Balance Cash Pent Period Ending Date 2019 2020 2021 2022 Total

Answer 1

А E Amortization Table C D Debit Debit Period interest notes ending Beginning expense payable Credit date balance (A*8%) (D-B) cash 2019 $19,000 $1,520 $4,217 $5,737 2020 $14,783 $1,183 $4,554 $5,737 2021 $10,229 $818 $4,919 $5,737 2022 $5,310 $425 $5,310 $5,735 Ending balance (A-C) $14,783 $10,229 $5,310 ($0)

• beginning balance is same as previous year ending balance
• interest expense is calculated by multiplying beginning balance with 8% rate of interest.
• Debit notes payable is the difference between the cash paid and the interest expense.
• ending balance is calculated by deducting debit notes payable from the beginning balance.