14. Gingerbread Corp was issued a $220,000 loan at 6%. The amortization schedule created by the company accountant is presented below. How much interest will Gingerbread Corp record in interest expense over a period of 6 years? AnnualInterestPrincipalPaymentPrincipalBalance220,000188,460155,028119,59082,02642,207PeriodPaymentExpense44,74044,74044,74044,74044,74044,740113,20011,3089,3027,1754,9222,53231,54033,43235,43837,56439,81842,20723456

payment paid against interest are interest expenses. Each interest expenses are shown and sum of all…

14. Gingerbread Corp was issued a $220,000 loan at 6%. The amortization schedule created by the company accountant is presented below. How much interest will Gingerbread Corp record in interest expense over a period of 6 years?

14. Gingerbread Corp was issued a $220,000 loan at 6%. The amortization schedule created by the company accountant is presented below. How much interest will Gingerbread Corp record in interest expense over a period of 6 years?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

14. Gingerbread Corp was issued a $220,000 loan at 6%. The amortization schedule created by the company accountant is presented below.

How much interest will Gingerbread Corp record in interest expense over a period of 6 years?

Annual
Interest
Principal
Payment
Principal
Balance
220,000
188,460
155,028
119,590
82,026
42,207
Period
Payment
Expense
44,740
44,740
44,740
44,740
44,740
44,740
1
13,200
11,308
9,302
7,175
4,922
2,532
31,540
33,432
35,438
37,564
39,818
42,207
2
3
4
5
6

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