Question

Exercise 10-10 Installment note with equal total payments LO C1 On January 1, 2017, Eagle borrows $18,000 cash by signing a four-year. 9% installment note. The note requires four equal payments of $5,556, consisting of accrued interest and principal on December 31 of each year from 2017 through 2020. Prepare an amortization table for this installment note. (Round all amounts to the nearest whole dollar.) Payments (B) (C) (D) Period Ending Beginning Balance Debit Interest Expense Debit Notes Payable Credit Cash Balance Ending Date 2017 2018 2019 2020 Total $

Answer 1

	A	B =A*6%	C=$5556-B	D=B+C	E=A+B-D
Period Ending Date	Opeaning Balance	Debit Interest	Debit Notes Payable	Credit Cash	Ending Balance
2017	$                    18,000	$              1,620	$                            3,936	$         5,556	$              14,064
2018	$                    14,064	$              1,266	$                            4,290	$         5,556	$                 9,774
2019	$                       9,774	$                  880	$                            4,676	$         5,556	$                 5,097
2020	$                       5,097	$                  459	$                            5,097	$         5,556	$                         0
Total		$              4,224		$      22,224