On January 1, Year 1, Bryson Company obtained a $22,000, four-year, 12% installment note from Campbell Bank. The note requires annual payments of $7,243, beginning on December 31, Year 1. a. Prepare an amortization table for this installment note, similar to the one presented in Exhibit 4. Note: Round the computation of the interest expense to the nearest whole dollar. Enter all amounts as positive numbers. In Year 4, round the amount in the Decrease in Notes Payable column either up or down to ensure that the Carrying Amount zeroes out. Amortization of Installment Notes Year Interest Expense Ending (12% of January 1 January 1 Note Payment Decrease in December 31 December Note Carrying Carrying Amount (Cash Paid) Notes Payable Carrying Amount 31 Amount) $ $ $ Year 1 22,000 V 7,243 2,640 4,603 17,397 V Year 2 17,397 V 7,243 2,088 5,155 12,242 V Year 3 12,242 V 7,244 X 1,469 5,775 X 6,467 X Year 4 6,467 X 7,245 X 776 6,467 28,975 X 6,973 22,000

On January 1, Year 1, Bryson Company obtained a $22,000, four-year, 12% installment note from Campbell Bank. The note requires annual payments of $7,243, beginning on December 31, Year 1. a. Prepare an amortization table for this installment note, similar to the one presented in Exhibit 4. Note: Round the computation of the interest expense to the nearest whole dollar. Enter all amounts as positive numbers. In Year 4, round the amount in the Decrease in Notes Payable column either up or down to ensure that the Carrying Amount zeroes out. Amortization of Installment Notes Year Interest Expense Ending (12% of January 1 January 1 Note Payment Decrease in December 31 December Note Carrying Carrying Amount (Cash Paid) Notes Payable Carrying Amount 31 Amount) $ $ $ Year 1 22,000 V 7,243 2,640 4,603 17,397 V Year 2 17,397 V 7,243 2,088 5,155 12,242 V Year 3 12,242 V 7,244 X 1,469 5,775 X 6,467 X Year 4 6,467 X 7,245 X 776 6,467 28,975 X 6,973 22,000

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

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