Exercise 10-2A (Algo) Amortization schedule for an installment note LO 10-1 On January 1, Year 1, Beatie Company borrowed $250,000 cash from Central Bank by issuing a five-year, 6 percent note. The principal and interest are to be paid by making annual payments in the amount of $59,349. Payments are to be made December 31 of each year, beginning December 31, Year 1. Required Prepare an amortization schedule for the interest and principal payments for the five-year period. Note: Round your answers to the nearest dollar amount. BEATIE COMPANY Amortization Schedule Year Principal Balance on January 1 Cash Payments Applied to Interest Applied to Principal Principal Balance End of December 31 Period Year 1 Year 2 Year 3 Year 4 Year 5
Exercise 10-2A (Algo) Amortization schedule for an installment note LO 10-1 On January 1, Year 1, Beatie Company borrowed $250,000 cash from Central Bank by issuing a five-year, 6 percent note. The principal and interest are to be paid by making annual payments in the amount of $59,349. Payments are to be made December 31 of each year, beginning December 31, Year 1. Required Prepare an amortization schedule for the interest and principal payments for the five-year period. Note: Round your answers to the nearest dollar amount. BEATIE COMPANY Amortization Schedule Year Principal Balance on January 1 Cash Payments Applied to Interest Applied to Principal Principal Balance End of December 31 Period Year 1 Year 2 Year 3 Year 4 Year 5
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Exercise 10-2A (Algo) Amortization schedule for an installment note LO 10-1
On January 1, Year 1, Beatie Company borrowed $250,000 cash from Central Bank by issuing a five-year, 6 percent note. The principal
and interest are to be paid by making annual payments in the amount of $59,349. Payments are to be made December 31 of each
year, beginning December 31, Year 1.
Required
Prepare an amortization schedule for the interest and principal payments for the five-year period.
Note: Round your answers to the nearest dollar amount.
BEATIE COMPANY
Amortization Schedule
Year
Principal
Balance on
January 1
Cash
Payments
Applied to
Interest
Applied to
Principal
Principal
Balance End of
December 31
Period
Year 1
Year 2
Year 3
Year 4
Year 5
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