The following amortization schedule indicates the interest and principal that Chip’s Cookie Corporation (CCC) must repay on an installment note established January 1, 2021. CCC has a December 31 year-end and makes the required annual payments on December 31.| Year | Beginning Notes Payable | Interest Expense | Repaid Principal on Notes Payable | Ending Notes Payable ||------|--------------------------|------------------|-----------------------------------|----------------------|| 1 | $52,000 | $4,680 | $11,371 | $40,629 || 2 | $40,629 | $3,657 | $12,394 | $28,235 || 3 | $28,235 | $2,541 | $13,510 | $14,725 || 4 | $14,725 | $1,325 | $14,725 | $0 || Total | | $12,203 | $52,000 | |Use the amortization schedule to determine:(a) The amount of the (rounded) annual payment.(b) The amount of interest expense to report in the year ended December 31, 2021 (Year 1).(c) The note payable balance at January 1, 2024.(d) The total interest and total principal paid over the note’s life.**Round your answers to the nearest whole dollar amount.**1. (a) Annual Payment: [ ]2. (b) Interest Expense: [ ]3. (c) Notes Payable: [ ]4. (d-1) Total Interest: [ ]5. (d-2) Total Principal: [ ]

Solution: Annual payment of note = Interest expense+ reduction in principal of notes payable Total…

The following amortization schedule indicates the interest and principal that Chip's Cookie Corporation (CCC) must repay on an installment note established January 1, 2021. CCC has a December 31 year-end and makes the required annual payments on December 31. Year 1 2 3 4 Total Beginning Notes Payable 52,000 40,629 28,235 14,725 Repaid Principal Interest Expense on Notes Payable (a) Annual Payment 4,680 3,657 2,541 1,325 12,203 11,371 12,394 13,510 14,725 52,000 Ending Notes Payable 40,629 28, 235 14,725 0 Use the amortization schedule to determine (a) the amount of the (rounded) annual payment; (b) the amount of interest expense to report in the year ended December 31, 2021 (Year 1); (c) the note payable balance at January 1, 2024; and (d) the total interest and total principal paid over the note's entire life. (Round your answers to the nearest whole dollar amount.)

The following amortization schedule indicates the interest and principal that Chip's Cookie Corporation (CCC) must repay on an installment note established January 1, 2021. CCC has a December 31 year-end and makes the required annual payments on December 31. Year 1 2 3 4 Total Beginning Notes Payable 52,000 40,629 28,235 14,725 Repaid Principal Interest Expense on Notes Payable (a) Annual Payment 4,680 3,657 2,541 1,325 12,203 11,371 12,394 13,510 14,725 52,000 Ending Notes Payable 40,629 28, 235 14,725 0 Use the amortization schedule to determine (a) the amount of the (rounded) annual payment; (b) the amount of interest expense to report in the year ended December 31, 2021 (Year 1); (c) the note payable balance at January 1, 2024; and (d) the total interest and total principal paid over the note's entire life. (Round your answers to the nearest whole dollar amount.)

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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