Sunland Company borrowed $2240000 from U.S. Bank on January 1, 2019 in order to expand its...
Sunland Company borrowed $2240000 from U.S. Bank on January 1, 2019 in order to expand its mining capabilities. The 5-year note required annual payments of $583378 and carried an annual interest rate of 9.5%. What is the balance in the notes payable account at December 31, 2020, after the annual payment?
|
$1814400 |
|
$2240000 |
|
$1463639 |
|
$1869422 |
2-4-4
Homework Answers
Interest expense:
= $2,240,000 X 9.5%
= $212,800
Principal payment:
= $583,378 - $212,800
= $370,578
Balance in the notes payable account at December 31, 2020, after the annual payment:
= $2,240,000 - $370,578
= $1,869,422
4th option
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