Question

Reliable Industries purchased a supply of electronic components from Tomorrow Corporation on October 31, 2021. In payment for the $1,080,000 million purchase, Reliable issued a 1-year installment note to be paid in equal monthly payments of 95,957 at the end of each month. The payments include interest at the rate of 12%. What is the balance of notes payable on December 31, 2021 balance sheet? (Do not add dollar sign; do not add comma by yourself to your amount round the answer to the whole number)

Answer 1

Total ($) Interest in each installment Principal amount in each installman $1,080,000 Balance due as on oct 31, 2021 Interest / Principal portion of first installment [Nov 30, 2021] $10,800 $ 95, 157 [1,080,000x1279)_[95,957 - 19800] Instalment Inting lesti principal portion of ist installment $(85,157) $994,843 Balance due as on Nov 30, 2021 Interest / Principal portion of second installment (Dec31, 2021) $9,948 [994843 X127- x) $86,009 [95,957 -9948] Lebla Principal portion of and installment Balance due as on Dec 31, 2021 $(86,009) $908, 834 Therefore, balance of notes payable on Dec 31, 2021 balance sheet would be_$908,834 I hope I've solved to the point. Please feel free to ask any quenes. Thank you.