On November 1, 2015, Norwood borrows $460,000 cash from a bankby signing a five-year installment note bearing 9% interest. Thenote requires equal total payments each year on October 31. (TableB.1, Table B.2, Table B.3, and Table B.4) (Use appropriatefactor(s) from the tables provided.)
Required: 1. Complete the below table to calculate the total amount of eachinstallment payment.
Initial Cash Proceeds PV Factor Amount of annual payment =
2. Complete an amortization table for thisinstallment note. (Round your intermediate calculations tothe nearest dollar amount.)
Period Ending Date Beginning Balance Debit Interest Expense + Debit Notes Payable = Credit Cash Ending Balance 10/31/2016 10/31/2017 10/31/2018 10/31/2019 10/31/2020 Total
3. Prepare thejournal entries in which Norwood records the following:
(a) Accrued interest as of December 31, 2015 (the end of its annualreporting period).
(b) The first annual payment on the note.
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On November 1, 2015, Norwood borrows $460,000 cash from a bankby signing a five-year installment note bearing 9% interest. Thenote requires equal total payments each year on October 31. (TableB.1, Table B.2, Table B.3, and Table B.4) (Use appropriatefactor(s) from the tables provided.)
| Required: | |
| 1. | Complete the below table to calculate the total amount of eachinstallment payment. |
|
2. Complete an amortization table for thisinstallment note. (Round your intermediate calculations tothe nearest dollar amount.)
(b) The first annual payment on the note. |
| \ |
Related questions
Please help fill in the missing blanks in the amortizationtable, and complete journal entries for number 3.
On November 1, 2015, Norwood borrows $460,000 cash from a bankby signing a five-year installment note bearing 9% interest. Thenote requires equal total payments each year on October 31. (TableB.1, Table B.2, Table B.3, and Table B.4) (Use appropriatefactor(s) from the tables provided.)
| Required: | |
| 1. | Complete the below table to calculate the total amount of eachinstallment payment. |
|
| 2. | Complete an amortization table for this installment note.(Round your intermediate calculations to the nearest dollaramount.) |
Period Ending Date
| Beginning Balance | Debit Interest Expense | + Debit Notes Payable | = Credit Cash | Ending Balance | |
| 10/31/2016 | $460,000 | $41,400 | $76,861 | $118,261 | $383,139 |
| 10/31/2017 | 383,137 | 34,482 | 83,780 | 118,263 | |
| 10/31/2018 | 26,942 | 91,320 | 118,263 | ||
| 10/31/2019 | 18,723 | 99,539 | 118,263 | ||
| 10/31/2020 | |||||
| Total | $121,547 | $351,500 | $473,050 |
3.
| Prepare thejournal entries in which Norwood records the following: | |
| (a) | Accrued interest as of December 31, 2015 (the end of its annualreporting period). |
(b) The first annual payment on the note.
