Prepare an amortization table for this installment note.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Required Information
Use the following Information for the Exercises below. (Algo)
[The following Information applies to the questions displayed below.]
On January 1, 2021, Eagle Company borrows $15,000 cash by signing a four-year, 7% Installment note. The note requires
four equal payments of $4,428, consisting of accrued Interest and principal on December 31 of each year from 2021
through 2024
Exercise 14-12 (Algo) Installment note amortization table LO C1
Prepare an amortization table for this installment note.
Note: Round all amounts to the nearest whole dollar.
Payments
Period Ending (A) Beginning
Date
Balance
(B) Debit Interest
Expense
(C) Debit Notes
Payable
(D) Credit Cash
(E) Ending
Balance
2021
S
15,000 $
1,050 S
3,378
$
4,428
11,622
2022
11,622
4,428
2023
4,428
2024
Total
$
1,050
$
13.284](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fae81dcfc-b286-433f-8592-c6d80a9d932a%2F0ab3b1a4-85b9-4e4a-baa8-616b54de3ac2%2Fhxotoy_processed.jpeg&w=3840&q=75)
Transcribed Image Text:!
Required Information
Use the following Information for the Exercises below. (Algo)
[The following Information applies to the questions displayed below.]
On January 1, 2021, Eagle Company borrows $15,000 cash by signing a four-year, 7% Installment note. The note requires
four equal payments of $4,428, consisting of accrued Interest and principal on December 31 of each year from 2021
through 2024
Exercise 14-12 (Algo) Installment note amortization table LO C1
Prepare an amortization table for this installment note.
Note: Round all amounts to the nearest whole dollar.
Payments
Period Ending (A) Beginning
Date
Balance
(B) Debit Interest
Expense
(C) Debit Notes
Payable
(D) Credit Cash
(E) Ending
Balance
2021
S
15,000 $
1,050 S
3,378
$
4,428
11,622
2022
11,622
4,428
2023
4,428
2024
Total
$
1,050
$
13.284
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