On January 1, Year 1, the Mahoney Company borrowed $177,000 cash from Sun Bank by issuing a five-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 based on the present value of annuity factor would be $44,331. The amount of principal repayment included in the December 31, Year 1 payment is: Multiple Choice $14,160 $44,331 $30,171 $37,674
On January 1, Year 1, the Mahoney Company borrowed $177,000 cash from Sun Bank by issuing a five-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 based on the present value of annuity factor would be $44,331. The amount of principal repayment included in the December 31, Year 1 payment is: Multiple Choice $14,160 $44,331 $30,171 $37,674
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
Related questions
Question
am. 270.
![On January 1, Year 1, the Mahoney Company borrowed $177,000 cash from Sun Bank by issuing a five-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 based on the present value of annuity factor
would be $44,331.
The amount of principal repayment included in the December 31, Year 1 payment is:
Multiple Choice
$14,160
$44,331
$30,171
$37,674](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa0a6d064-d60f-4f54-aa81-ca6ff52cfb9a%2F8f3ee990-1c77-4424-b6c5-614afec676d4%2Fihk11st_processed.jpeg&w=3840&q=75)
Transcribed Image Text:On January 1, Year 1, the Mahoney Company borrowed $177,000 cash from Sun Bank by issuing a five-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 based on the present value of annuity factor
would be $44,331.
The amount of principal repayment included in the December 31, Year 1 payment is:
Multiple Choice
$14,160
$44,331
$30,171
$37,674
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