15-yearAt the beginning of year 1, a company acquires a $1,000,000 term loan with an interest rate ofyears 7.50% and an annual payment based on a 15-yearamortization. The total liabilities section of the balance sheet looked like this for years X2 and X3. What would be the amount of principal paid on the subject termloan in year 4 ? Please show work Question #4At the beginning of year 1, a company acquires a $1,000,000 term loan with an interest rate of7.50% and an annual payment based on a 15-year amortization. The total liabilities section ofthe balance sheet looked like this for years X2 and X3. What would be the amount of principalpaid on the subject term loan in year 4?Year 2Line of Credit750,000Year 3800,000Current Portion of Long-Term Debt43,56546,946Accounts Payable1,357,6991,137,248AccrualsTotal Current Liabilities63.5612,214,82585,7992,069,993Term Loan878,496831,550Other Long-Term Liabilities500,000500,000Total Long-Term Liabilities$1,378,496$1,331,550Total Liabilities$3,593,321$3,401,543

To calculate the amount of principal paid on the term loan in year 4, we need to analyze the changes…

Question #4 At the beginning of year 1, a company acquires a $ 7.50% and an annual payment based on a 15-year an the balance sheet looked like this for years X2 and paid on the subject term loan in year 4?

Question #4 At the beginning of year 1, a company acquires a $ 7.50% and an annual payment based on a 15-year an the balance sheet looked like this for years X2 and paid on the subject term loan in year 4?

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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Question

15-yearAt the beginning of year 1, a company acquires a $1,000,000 term loan with an interest rate ofyears 7.50% and an annual payment based on a 15-year
amortization. The total liabilities section of the balance sheet looked like this for years X2 and X3. What would be the amount of principal paid on the subject term
loan in year 4 ? Please show work

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Step 1: Calculate the Change in Long-Term Liabilities

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Step 2: Determine the Principal Portion Paid in Year 4:

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