On January 1, Year 1, Beatle Company borrowed $340,000 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 $80,715. 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 BEATIE COMPANY Amortization Schedule $340,000, 5-Year Term Note, 6% Interest Rate Cash Payments December 31 Applied to Interest Applied to Principal Principal Balance End of Period

On January 1, Year 1, Beatle Company borrowed $340,000 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 $80,715. 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 BEATIE COMPANY Amortization Schedule $340,000, 5-Year Term Note, 6% Interest Rate Cash Payments December 31 Applied to Interest Applied to Principal Principal Balance End of Period

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter14: Long-term Liabilities: Bonds And Notes

Section: Chapter Questions

Problem 11E

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