A partial amortization schedule for a 5-year note payable that Mabry Company issued on January 1, 2018, is shown as follows. AccountingPeriodPrincipalBalance January 1CashPaymentApplied toInterestApplied toPrincipal2018$123,000 $31,622 $11,070 $20,552 2019 102,448 31,622 9,220 22,402 2020 80,046 31,622 7,204 24,418 What is the amount of interest expense on this loan for 2021?

Interest expense: A charge made by lender on the amount lent to a borrower. Borrower borrows the…

Answered: A partial amortization schedule for a…

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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A partial amortization schedule for a 5-year note payable that Mabry Company issued on January 1, 2018, is shown as follows.

Accounting Period	Principal Balance January 1	Cash Payment	Applied to Interest	Applied to Principal
2018	$	123,000		$	31,622	$	11,070	$	20,552
2019		102,448			31,622		9,220		22,402
2020		80,046			31,622		7,204		24,418

What is the amount of interest expense on this loan for 2021?

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