On January 1, 2024, Evanston Corporation borrowed $22 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 $8,230,416 on December 31 of each year. The payments include interest at a rate of 6%. 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.)
On January 1, 2024, Evanston Corporation borrowed $22 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 $8,230,416 on December 31 of each year. The payments include interest at a rate of 6%. 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.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![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, Evanston Corporation borrowed $22 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 $8,230,416 on December 31 of each year. The
payments include interest at a rate of 6%.
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
Cash Paid
Interest
Expense
Change in
Carrying Value
Carrying
Value
1/1/2024
12/31/2024
12/31/2025
22,000,000
$
8,230,416 $ 1,320,000
8,230,416
12/31/2026
8,230,416](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa7f21d5d-e597-4300-a9ae-a34be16ae7ec%2F3d5e18e0-33b9-4f23-af4e-76902add922f%2Fu77fww_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, Evanston Corporation borrowed $22 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 $8,230,416 on December 31 of each year. The
payments include interest at a rate of 6%.
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
Cash Paid
Interest
Expense
Change in
Carrying Value
Carrying
Value
1/1/2024
12/31/2024
12/31/2025
22,000,000
$
8,230,416 $ 1,320,000
8,230,416
12/31/2026
8,230,416
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