Answered: On January 1, Year 1, Mahoney Company… | bartleby

FINANCIAL ACCOUNTING

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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On January 1, Year 1, Mahoney Company borrowed $172,000 cash from Sun Bank by issuing a 5-year, 8% term note. The principal and interest are repaid by making annual payments beginning on December 31, Year 1.
The annual payment on the loan equals $43,079.
What is the amount of principal repayment included in the payment made on December 31, Year 1?
Multiple Choice
O
OOO
$29,319
$37,559
$13,760
$40,825

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