Required B: What is the principal balance on January 1, Year 2? (Round intermediate calculations to the nearest whole dollar amount. Round your answer to the nearest dollar amount.) Required C: What portion of the December 31, Year 2, payment is applied to interest expense and principal? (Round intermediate calculations to nearest whole dollar amount. Round your answers to the nearest dollar amount.) Interest expense: Principle: Dan Dayle started a business by issuing a $95,000 face-value note to First State Bank on January 1, Year 1. The note had a 7 percentannual rate of interest and a five-year term. Payments of $23,170 are to be made each December 31 for five years.Requireda. What portion of the December 31, Year 1, payment is applied to interest expense and principal?b. What is the principal balance on January 1, Year 2?c. What portion of the December 31, Year 2, payment is applied to interest expense and principal?Complete this question by entering your answers in the tabs below.Required ARequired BRequired CWhat portion of the December 31, Year 1, payment is applied to interest expense and principal? (Round intermediatecalculations to nearest whole dollar amount. Round your answers to the nearest dollar amount.)Interest expensePrincipal< Required ARequired B >

Formula: Interest expense = Principal amount x Interest rate x Time period

Answered: What is the principal balance on…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 12EA: Scrimiger Paints wants to upgrade its machinery and on September 20 takes out a loan from the bank...

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Required B:

What is the principal balance on January 1, Year 2? (Round intermediate calculations to the nearest whole dollar amount. Round your answer to the nearest dollar amount.)

Required C: What portion of the December 31, Year 2, payment is applied to interest expense and principal? (Round intermediate calculations to nearest whole dollar amount. Round your answers to the nearest dollar amount.)

Interest expense:

Principle:

Dan Dayle started a business by issuing a $95,000 face-value note to First State Bank on January 1, Year 1. The note had a 7 percent
annual rate of interest and a five-year term. Payments of $23,170 are to be made each December 31 for five years.
Required
a. What portion of the December 31, Year 1, payment is applied to interest expense and principal?
b. What is the principal balance on January 1, Year 2?
c. What portion of the December 31, Year 2, payment is applied to interest expense and principal?
Complete this question by entering your answers in the tabs below.
Required A
Required B
Required C
What portion of the December 31, Year 1, payment is applied to interest expense and principal? (Round intermediate
calculations to nearest whole dollar amount. Round your answers to the nearest dollar amount.)
Interest expense
Principal
< Required A
Required B >

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