Question

Exercise 10-10 Installment note with equal total payments LO C1 On January 1 2017. Eagle borrows $28,000 cash $8,081, consisting of accrued interest and principal on December 31 of each year from 2017 through 2020. Iable 81 Table B.2. Table B.3, and Table B.4) (Use appropriate factor(s) from the tables provided.) by signing a four-year, 6% installment note. The note requires four equal payments of Prepare an amortization table for this installment note. Payments Period Ending Beginning Debit Interest Debit NotesCredit Expense Ending Balance Date 2017 2018 2019 2020 Total Balance Payable Cash

Answer 1

Amortization Table
Period ending	Beginning book value	Debit interest expenses	Debit Notes payable	Credit Cash	Ending balance
{1}	{2}	{3 } 6% on outstanding	{4} = (Principal portion)	{5} = ( annual payment)	{6} = {2}-{4}
					28,000.00
2017	28,000.00	1,680.00	6,401.00	8,081.00	21,599.00
2018	21,599.00	1,295.94	6,785.06	8,081.00	14,813.94
2019	14,813.94	888.84	7,192.16	8,081.00	7,621.78
2020	7,621.78	457.31	7,623.69	8,081.00	(1.92)