108-21 Droblems for Section 10B 10n I*,On June 1, 20x0, TANGNEY Corporation has

Question

108-21 Droblems for Section 10B 10n I*,On June 1, 20x0, TANGNEY Corporation has borrowed $70,000 at an effective interest rate of 8%. Their first payment is not due until June 1. 20x2, at which time TANGNEY must pay S20,000. Then, on June 1, 20x3, TANGNEY must make a $30,000 payment. The remainder of the money owed must be repaid on June 1, 20x4. Required Prepare the amortization table for this loan. 10B-2. (Similar to problem 10B-1) On June 1, 20x0 WAKEFIELD Corporation has borrowed $90,000 at an effective interest rate of 7%. Their first payment is not due until June 1, 20x2 at which ume WAKEFIELD must pay $24 ,000. Then, on June 1, 20x3 WAKEFIELD must make a $36,000 ment, The remainder of the money owed must be repaid on June 1, 20x4 Required Prepare the amortization table for this loan. 10B-3. On April 1, 20x1 NAIL Company buys a used car for $34,000. NAIL pays $9,000 cash and finances the rest of the purchase using an 8% three-year loan which calls for three equal annual payments of $9,700.84 each April I of the next three years. Required 2 Show the entry to record the loan and the adjusting entry necessary at the time NAIL closes ecord the first loan payment on April 1. 20x2. 1. Prepare the anortization table for this loan for all three years w the entry to its books on December 31, 20x1. Then sho de with a face value of

Explanation / Answer

ans 10B-2 Amortization Table Date Payment Principal P Int payment I Outstanding Balance last balance-P June 1 20X0 $90,000 June 1 20X1 0 0 0 $90,000 June 1 20X2 $24,000 $20,640 3360 $69,360 (24000-3360) (24000*7%*2 years) June 1 20X3 36000 $31,145 $4,855 $38,215 (69360*7%) June 1 20X4 40890 $38,215 $2,675 0 (38215+2675) (38215*7%)

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