On January 1, Year 1, Beatie Company borrowed $360,000 cash from Central Bank by issuing a five-year, 6 percent note. The princip and interest are to be paid by making annual payments in the amount of $85,463. 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. Year Year 1 Year 2 Year 3 Year 4 Year 5 Principal Balance on January 11 BEATIE COMPANY Amortization Schedule Cash Payments December 31 Applied to Interest Applied to Principal Principal Balance End of Period

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Question

Subject: accounting 

and interest are to be paid by making annual payments in the amount of $85,463. Payments are to be made December 31 of
year, beginning December 31, Year 1.
On January 1, Year 1, Beatie Company borrowed $360,000 cash from Central Bank by issuing a five-year, 6 percent note. The principal
each
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.
Year
Year 1
Year 2
Year 3
Year 4
Year 5
Principal
Balance on
January 1
BEATIE COMPANY
Amortization Schedule
Cash
Payments
December 31
Applied to
Interest
Applied to
Principal
Principal
Balance End of
Period
Transcribed Image Text:and interest are to be paid by making annual payments in the amount of $85,463. Payments are to be made December 31 of year, beginning December 31, Year 1. On January 1, Year 1, Beatie Company borrowed $360,000 cash from Central Bank by issuing a five-year, 6 percent note. The principal each 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. Year Year 1 Year 2 Year 3 Year 4 Year 5 Principal Balance on January 1 BEATIE COMPANY Amortization Schedule Cash Payments December 31 Applied to Interest Applied to Principal Principal Balance End of Period
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