Homework Answers
Based on the information above, the interest and principle amortization table for the five year period can be setup as follows:-
The formulas used are as
follows:-
In order to calculate the amount charged to interest out of the $62,363 yearly payments, we use the carrying value of the loan at the beginning of the year (Column C) and multiply it by 5% to find the interest expense. The rest of the amount from the $62,363 yearly payment is charged against the principal.
At the end of the 5 years, as can be seen from the amortization table above, the balance of the borrowed cash along with the interest is almost 0.(Note :- There is $2 left at the end of 5 years because we have used the round function in excel to calculate the interest payment amounts because of which they have been rounded to the nearest dollar as per the question).
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On January 1, Year 1, Beatie Co. borrowed $270,000 cash from Central Bank by issuing a...
On January 1, Year 1, Beatie Co. borrowed $270,000 cash from Central Bank by issuing a...
On January 1, Year 1, Beatie Co. borrowed $270,000 cash from Central Bank by issuing a five-year, 5 percent note. The principal and interest are to be paid by making annual payments in the amount of $62,363. Payments are to be made December 31 of each year, beginning December 31, Year 1 Required Prepare an amortization schedule for the interest and principal payments for the five-year period. (Round your answers to the nearest dollar amount.) BEATIE CO. Amortization Schedule $270,000,...
On January 1, Year 1, Beatie Co. borrowed $270,000 cash from Central Bank by issuing a...
On January 1, Year 1, Beatie Co. borrowed $270,000 cash from Central Bank by issuing a five-year, 5 percent note. The principal and interest are to be paid by making annual payments in the amount of $62,363. Payments are to be made December 31 of each year, beginning December 31, Year 1. Required Prepare an amortization schedule for the interest and principal payments for the five-year period. (Round your answers to the nearest dollar amount.) BEATIE CO. Amortization Schedule $270,000,...
On January 1, Year 1, Beatie Co. borrowed $410,000 cash from Central Bank by issuing a...
On January 1, Year 1, Beatie Co. borrowed $410,000 cash from Central Bank by issuing a five-year, 4 percent note. The principal and interest are to be paid by making annual payments in the amount of $92,097. Payments are to be made December 31 of each year, beginning December 31, Year 1. Required Prepare an amortization schedule for the interest and principal payments for the five-year period. (Round your answers to the nearest dollar amount.) BEATIE CO Amortization Schedule $410,000,...
On January 1, Year 1, Beatie Co. borrowed $250,000 cash from Central Bank by issuing a...
On January 1, Year 1, Beatie Co. borrowed $250,000 cash from Central Bank by issuing a five-year, 6 percent note. The principal and interest are to be paid by making annual payments in the amount of $59,349. Payments are to be made December 31 of each year, beginning December 31, Year 1. Required Prepare an amortization schedule for the interest and principal payments for the five-year period. (Round your answers to the nearest dollar amount.) BEATIE CO. Amortization Schedule $250,000,...
Exercise 10-2A Amortization schedule for an installment note LO 10-1 On January 1, Year 1, Beatie...
Exercise 10-2A Amortization schedule for an installment note LO
10-1
On January 1, Year 1, Beatie Co. borrowed $330,000 cash from
Central Bank by issuing a five-year, 6 percent note. The principal
and interest are to be paid by making annual payments in the amount
of $78,341. Payments are to be made December 31 of each year,
beginning December 31, Year 1.
Required
Prepare an amortization schedule for the interest and principal
payments for the five-year period. (Round your answers...
On January 1, 2018, brown co. borrowed cash from First Bank by issuing 49,500 for face...
On January 1, 2018, brown co. borrowed cash from First Bank by
issuing 49,500 for face value,
four-year term note that had an 8 percent annual interest rate.
The note is to be repaid by making annual cash payments of $14,285
that include both interest and principal on December 31 of each
year. Brown used the proceeds from the loan to purchase land that
generated rental revenues of $22,275 cash per year.
A. Prepare an amortization schedule for the four-year...
On January 1, 2018, Brown Co. borrowed cash from First Bank by issuing a $52,000 face...
On January 1, 2018, Brown Co. borrowed cash from First Bank by issuing a $52,000 face value, four-year term note that had an 6 percent annual interest rate. The note is to be repaid by making annual cash payments of $15,007 that include both interest and principal on December 31 of each year. Brown used the proceeds from the loan to purchase land that generated rental revenues of $24,960 cash per year. Required a. Prepare an amortization schedule for the...
On January 1, Year 1, Brown Co. borrowed cash from First Bank by issuing a $102,000...
On January 1, Year 1, Brown Co. borrowed cash from First Bank by issuing a $102,000 face-value, four-year term note that had an 7 percent annual interest rate. The note is to be repaid by making annual cash payments of $30,113 that include both interest and principal on December 31 of each year. Brown used the proceeds from the loan to purchase land that generated rental revenues of $54,000 cash per year. a. Prepare an amortization schedule for the four-year...
The following information applies to the questions displayed below.) On January 1, 2018, Brown Co. borrowed...
The following information applies to the questions displayed below.) On January 1, 2018, Brown Co. borrowed cash from First Bank by issuing a $80,000 face value, four-year term note that had an 6 percent annual interest rate. The note is to be repaid by making annual cash payments of $23,087 that include both interest and principal on December 31 of each year. Brown used the proceeds from the loan to purchase land that generated rental revenues of $42,400 cash per...
On January 1, 2018, Brown Co. borrowed cash from First Bank by issuing a $49,500 face...
On January 1, 2018, Brown Co. borrowed cash from First Bank by issuing a $49,500 face value, four-year term note that had an 6 percent annual interest rate. The note is to be repaid by making annual cash payments of $14,285 that include both interest and principal on December 31 of each year. Brown used the proceeds from the loan to purchase land that generated rental revenues of $22,275 cash per year. BROWN CO. Balance Sheet As of December 31...
On January 1, Year 1, Beatie Co. borrowed $270,000 cash from Central Bank by issuing a five-year, 5 percent note. The principal and interest are to be paid by making annual payments in the amount of $62,363. Payments are to be made December 31 of each year, beginning December 31, Year 1 Required Prepare an amortization schedule for the interest and principal payments for the five-year period. (Round your answers to the nearest dollar amount.) BEATIE CO. Amortization Schedule $270,000,...
On January 1, Year 1, Beatie Co. borrowed $270,000 cash from Central Bank by issuing a five-year, 5 percent note. The principal and interest are to be paid by making annual payments in the amount of $62,363. Payments are to be made December 31 of each year, beginning December 31, Year 1. Required Prepare an amortization schedule for the interest and principal payments for the five-year period. (Round your answers to the nearest dollar amount.) BEATIE CO. Amortization Schedule $270,000,...
On January 1, Year 1, Beatie Co. borrowed $410,000 cash from Central Bank by issuing a five-year, 4 percent note. The principal and interest are to be paid by making annual payments in the amount of $92,097. Payments are to be made December 31 of each year, beginning December 31, Year 1. Required Prepare an amortization schedule for the interest and principal payments for the five-year period. (Round your answers to the nearest dollar amount.) BEATIE CO Amortization Schedule $410,000,...
On January 1, Year 1, Beatie Co. borrowed $250,000 cash from Central Bank by issuing a five-year, 6 percent note. The principal and interest are to be paid by making annual payments in the amount of $59,349. Payments are to be made December 31 of each year, beginning December 31, Year 1. Required Prepare an amortization schedule for the interest and principal payments for the five-year period. (Round your answers to the nearest dollar amount.) BEATIE CO. Amortization Schedule $250,000,...
Exercise 10-2A Amortization schedule for an installment note LO
10-1
On January 1, Year 1, Beatie Co. borrowed $330,000 cash from
Central Bank by issuing a five-year, 6 percent note. The principal
and interest are to be paid by making annual payments in the amount
of $78,341. Payments are to be made December 31 of each year,
beginning December 31, Year 1.
Required
Prepare an amortization schedule for the interest and principal
payments for the five-year period. (Round your answers...
On January 1, 2018, brown co. borrowed cash from First Bank by
issuing 49,500 for face value,
four-year term note that had an 8 percent annual interest rate.
The note is to be repaid by making annual cash payments of $14,285
that include both interest and principal on December 31 of each
year. Brown used the proceeds from the loan to purchase land that
generated rental revenues of $22,275 cash per year.
A. Prepare an amortization schedule for the four-year...
On January 1, 2018, Brown Co. borrowed cash from First Bank by issuing a $52,000 face value, four-year term note that had an 6 percent annual interest rate. The note is to be repaid by making annual cash payments of $15,007 that include both interest and principal on December 31 of each year. Brown used the proceeds from the loan to purchase land that generated rental revenues of $24,960 cash per year. Required a. Prepare an amortization schedule for the...
The following information applies to the questions displayed below.) On January 1, 2018, Brown Co. borrowed cash from First Bank by issuing a $80,000 face value, four-year term note that had an 6 percent annual interest rate. The note is to be repaid by making annual cash payments of $23,087 that include both interest and principal on December 31 of each year. Brown used the proceeds from the loan to purchase land that generated rental revenues of $42,400 cash per...
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