Sharapova Inc. borrowed $50,000 from Kerber Bank and signed a 5-year note payable stating the interest rate was 5% compounded annually. Sharapova Inc. will make payments of $11,548.74 at the end of each year. Prepare an amortization table showing the principal and interest in each payment. Annual Period Interest Expense Annual Payment Principal Payment Ending Balance 1 2 3 4 5 PLEASE NOTE: All dollar amounts will be rounded to two decimal places with "$" and commas as needed (i.e. $12,345.67). For the journal entry, you must enter the account names exactly as written below and for accounts having similar accounting treatment (DR or CR), you are to record Balance Sheet accounts first, followed by Income Statement accounts. Based on the amortization schedule above and using the following accounts, Principal Payment Cash Interest Income LT Notes Payable Annual Payment Interest Expense provide the journal entry for the first year payment: DR DR/CR? CR
Sharapova Inc. borrowed $50,000 from Kerber Bank and signed a 5-year note payable stating the interest rate was 5% compounded annually. Sharapova Inc. will make payments of $11,548.74 at the end of each year. Prepare an amortization table showing the principal and interest in each payment. Annual Period Interest Expense Annual Payment Principal Payment Ending Balance 1 2 3 4 5 PLEASE NOTE: All dollar amounts will be rounded to two decimal places with "$" and commas as needed (i.e. $12,345.67). For the journal entry, you must enter the account names exactly as written below and for accounts having similar accounting treatment (DR or CR), you are to record Balance Sheet accounts first, followed by Income Statement accounts. Based on the amortization schedule above and using the following accounts, Principal Payment Cash Interest Income LT Notes Payable Annual Payment Interest Expense provide the journal entry for the first year payment: DR DR/CR? CR
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Sharapova Inc. borrowed $50,000 from Kerber Bank and signed a 5-year note payable stating the interest rate was 5% compounded annually. Sharapova Inc. will make payments of $11,548.74 at the end of each year. Prepare an amortization table showing the principal and interest in each payment.
| Annual Period | Interest Expense | Annual Payment |
Principal Payment |
Ending Balance |
| 1 | ||||
| 2 | ||||
| 3 | ||||
| 4 | ||||
| 5 |
PLEASE NOTE: All dollar amounts will be rounded to two decimal places with "$" and commas as needed (i.e. $12,345.67). For the
Based on the amortization schedule above and using the following accounts,
| Principal Payment | Cash | Interest Income |
| LT Notes Payable | Annual Payment | Interest Expense |
provide the journal entry for the first year payment:
| DR | ||
| DR/CR? | ||
| CR |
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