24, Cicero Corporation borrowed $ loan will be paid back in three equa e interest at a rate of 7%
24, Cicero Corporation borrowed $ loan will be paid back in three equa e interest at a rate of 7%
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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T8.
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Problem 9-2A (Algo) Prepare amortization schedule and record installment notes (LO9-2)
[The following information applies to the questions displayed below.]
On January 1, 2024, Cicero Corporation borrowed $3 million from a local bank to construct a new building over the next
three years. The loan will be paid back in three equal installments of $1,143,155 on December 31 of each year. The
payments include interest at a rate of 7%.
Problem 9-2A (Algo) Part 2
2. Prepare an amortization schedule over the three-year life of the installment note. (Round your final answers to the nearest dollar
amount.)
Date
1/1/2024
12/31/2024
12/31/2025
12/31/2026
Cash Paid
Interest
Expense
Change in
Carrying Value
Carrying
Value](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2dbf05e8-4609-48ee-b8a3-5dc8c1c2617c%2F7906904a-c9d5-4378-bd10-09b659fd25c2%2Fbv8iz7n_processed.png&w=3840&q=75)
Transcribed Image Text:!
Required information
Problem 9-2A (Algo) Prepare amortization schedule and record installment notes (LO9-2)
[The following information applies to the questions displayed below.]
On January 1, 2024, Cicero Corporation borrowed $3 million from a local bank to construct a new building over the next
three years. The loan will be paid back in three equal installments of $1,143,155 on December 31 of each year. The
payments include interest at a rate of 7%.
Problem 9-2A (Algo) Part 2
2. Prepare an amortization schedule over the three-year life of the installment note. (Round your final answers to the nearest dollar
amount.)
Date
1/1/2024
12/31/2024
12/31/2025
12/31/2026
Cash Paid
Interest
Expense
Change in
Carrying Value
Carrying
Value
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