In January 1, 2020, Mega Corporation issued a $55,000, three-year, 6% installment note from Biggest Bank. The note requires annual payments of $20,576 beginning on December 31, 2020. Use this information to complete the following loan amortization table (round all of your answers to the nearest dollar).
In January 1, 2020, Mega Corporation issued a $55,000, three-year, 6% installment note from Biggest Bank. The note requires annual payments of $20,576 beginning on December 31, 2020. Use this information to complete the following loan amortization table (round all of your answers to the nearest dollar).
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter14: Long-term Liabilities: Bonds And Notes
Section: Chapter Questions
Problem 11E
Related questions
Question
In January 1, 2020, Mega Corporation issued a $55,000, three-year, 6% installment note from Biggest Bank. The note requires annual payments of $20,576 beginning on December 31, 2020. Use this information to complete the following loan amortization table (round all of your answers to the nearest dollar).
Amortization of Installment Note |
|
|||||||||
For the Year Ending |
Jan. 1st Carrying Amount |
Note Payment (Cash paid) |
Interest Expense (6%) |
Decrease in Principal |
Dec. 31st Carrying Amount |
|||||
12/31/20 |
|
|
|
|
|
|||||
12/31/21 |
|
|
|
|
|
|||||
12/31/22 |
|
|
|
|
|
|||||
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Recommended textbooks for you
![Financial Accounting](https://www.bartleby.com/isbn_cover_images/9781305088436/9781305088436_smallCoverImage.gif)
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
![Financial Accounting](https://www.bartleby.com/isbn_cover_images/9781305088436/9781305088436_smallCoverImage.gif)
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
![EBK CONTEMPORARY FINANCIAL MANAGEMENT](https://www.bartleby.com/isbn_cover_images/9781337514835/9781337514835_smallCoverImage.jpg)
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
![Intermediate Accounting: Reporting And Analysis](https://www.bartleby.com/isbn_cover_images/9781337788281/9781337788281_smallCoverImage.jpg)
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
![Financial Accounting: The Impact on Decision Make…](https://www.bartleby.com/isbn_cover_images/9781305654174/9781305654174_smallCoverImage.gif)
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning