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Blossom Inc. developed a new sales gimmick to help sell its inventory of new automobiles. Because many new car buyers need financing, Blossom offered a low downpayment and low car payments for the first year after purchase. It believes that this promotion will bring in some new buyers. On January 1, 2025, a customer purchased a new $38,200 automobile, making a downpayment of $1,640. The customer signed a note indicating that the annual rate of interest would be 8% and that quarterly payments would be made over 3 years. For the first year, Blossom required a $400 quarterly payment to be made on April 1, July 1, October 1, and January 1, 2026. After this one-year period, the customer was required to make regular quarterly payments that would pay off the loan as of January 1, 2028. Click here to view factor tables. (a) Your answer is partially correct. Prepare a note amortization schedule for the first year. (Round answers to 0 decimal places, e.g. 38,548. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Cash Paid 400 Interest Expense 731 400 738 SA Change in Carrying Value of Note Carrying Value of Note 36560 331 36891 338 37229 400 745 345 37574 400 751 351 37925

Blossom Inc. developed a new sales gimmick to help sell its inventory of new automobiles. Because many new car buyers need financing, Blossom offered a low downpayment and low car payments for the first year after purchase. It believes that this promotion will bring in some new buyers. On January 1, 2025, a customer purchased a new $38,200 automobile, making a downpayment of $1,640. The customer signed a note indicating that the annual rate of interest would be 8% and that quarterly payments would be made over 3 years. For the first year, Blossom required a $400 quarterly payment to be made on April 1, July 1, October 1, and January 1, 2026. After this one-year period, the customer was required to make regular quarterly payments that would pay off the loan as of January 1, 2028. Click here to view factor tables. (a) Your answer is partially correct. Prepare a note amortization schedule for the first year. (Round answers to 0 decimal places, e.g. 38,548. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Cash Paid 400 Interest Expense 731 400 738 SA Change in Carrying Value of Note Carrying Value of Note 36560 331 36891 338 37229 400 745 345 37574 400 751 351 37925

FINANCIAL ACCOUNTING
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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Blossom Inc. developed a new sales gimmick to help sell its inventory of new automobiles. Because many new car buyers need financing, Blossom offered a low downpayment and low car payments for the first year after purchase. It believes that this promotion will bring in some new buyers. On January 1, 2025, a customer purchased a new $38,200 automobile, making a downpayment of $1,640. The customer signed a note indicating that the annual rate of interest would be 8% and that quarterly payments would be made over 3 years. For the first year, Blossom required a $400 quarterly payment to be made on April 1, July 1, October 1, and January 1, 2026. After this one-year period, the customer was required to make regular quarterly payments that would pay off the loan as of January 1, 2028. Click here to view factor tables. (a) Your answer is partially correct. Prepare a note amortization schedule for the first year. (Round answers to 0 decimal places, e.g. 38,548. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Cash Paid 400 Interest Expense 731 400 738 SA Change in Carrying Value of Note Carrying Value of Note 36560 331 36891 338 37229 400 745 345 37574 400 751 351 37925
Transcribed Image Text:Blossom Inc. developed a new sales gimmick to help sell its inventory of new automobiles. Because many new car buyers need financing, Blossom offered a low downpayment and low car payments for the first year after purchase. It believes that this promotion will bring in some new buyers. On January 1, 2025, a customer purchased a new $38,200 automobile, making a downpayment of $1,640. The customer signed a note indicating that the annual rate of interest would be 8% and that quarterly payments would be made over 3 years. For the first year, Blossom required a $400 quarterly payment to be made on April 1, July 1, October 1, and January 1, 2026. After this one-year period, the customer was required to make regular quarterly payments that would pay off the loan as of January 1, 2028. Click here to view factor tables. (a) Your answer is partially correct. Prepare a note amortization schedule for the first year. (Round answers to 0 decimal places, e.g. 38,548. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Cash Paid 400 Interest Expense 731 400 738 SA Change in Carrying Value of Note Carrying Value of Note 36560 331 36891 338 37229 400 745 345 37574 400 751 351 37925
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