On January 1, Year 1, Beatie Company borrowed $240,000 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 $56,975. 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. (Round your answers to the nearest dollar amount.)
On January 1, Year 1, Beatie Company borrowed $240,000 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 $56,975. 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. (Round your answers to the nearest dollar amount.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Subject: accounting
![On January 1, Year 1, Beatie Company borrowed $240,000 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 $56,975. 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.
(Round your answers to the nearest dollar amount.)
Year
Year 1
Year 2
Year 3
Year 4
Year 5
Principal
Balance
on January 1
$
240,000
197,425
152,296
104,458
53,751
X Answer is complete but not entirely correct.
BEATIE COMPANY
Amortization Schedule
$240,000, 5-Year Term Note, 6% Interest Rate
Cash
Payments
December 31
14,400
11,845 X
9,137 X
6,267 X
3,224
$
Applied to
Interest
56,975 X $
56,975 X
56,975 X
56,975 X
56,975
Applied to
Principal
42,575
45,129
47,837
50,707
53,750
$
Principal
Balance
End of
Period
197,425
152,295
104,458
53,750
0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc7fe5a73-45e4-4166-8ba1-50e355550dfc%2F6b21fa11-d243-40aa-b04a-23735806f965%2Fqgp2r3_processed.jpeg&w=3840&q=75)
Transcribed Image Text:On January 1, Year 1, Beatie Company borrowed $240,000 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 $56,975. 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.
(Round your answers to the nearest dollar amount.)
Year
Year 1
Year 2
Year 3
Year 4
Year 5
Principal
Balance
on January 1
$
240,000
197,425
152,296
104,458
53,751
X Answer is complete but not entirely correct.
BEATIE COMPANY
Amortization Schedule
$240,000, 5-Year Term Note, 6% Interest Rate
Cash
Payments
December 31
14,400
11,845 X
9,137 X
6,267 X
3,224
$
Applied to
Interest
56,975 X $
56,975 X
56,975 X
56,975 X
56,975
Applied to
Principal
42,575
45,129
47,837
50,707
53,750
$
Principal
Balance
End of
Period
197,425
152,295
104,458
53,750
0
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