Question

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.

Initial Cash Proceeds		PV Factor		Amount of annual payment
$460,000	÷	3.8897	=	$118,261

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.