Gingerbread Corp was issued a $250,000 loan at 8% with a five year maturity date. The partial amortization schedule prepared by the company accountant is presented below.    What will the company record for interest expense in period 4? (round decimal up to the nearest whole $) Interest expense in period four ?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Gingerbread Corp was issued a $250,000 loan at 8% with a five year maturity date. The partial amortization schedule prepared by the company accountant is presented below. 

 

What will the company record for interest expense in period 4? (round decimal up to the nearest whole $)

Interest expense in period four ?
Principal
Payment
Annual
Interest
Principal
Balance
250,000
207,386
161,363
111,658
Period
Payment
Еxpense
1
62,614
62,614
62,614
62,614
62,614
20,000
16,591
12,909
42,614
46,023
49,705
2
3
4
5
Transcribed Image Text:Principal Payment Annual Interest Principal Balance 250,000 207,386 161,363 111,658 Period Payment Еxpense 1 62,614 62,614 62,614 62,614 62,614 20,000 16,591 12,909 42,614 46,023 49,705 2 3 4 5
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