Seved Help Save & Exit Submit Check my work Exercise 10-10 Installment note with

Question

Seved Help Save & Exit Submit Check my work Exercise 10-10 Installment note with equal total payments LO C1 15 points On January 1, 2017, Eagle borrows $31,000 cash by signing a four-year, % installment note. The note requires four equal payments of $9,360, consisting of accrued interest and principal on December 31 of each year from 2017 through 2020. Table B.1. Table B.2. Table B3, and Table B.4) (Use appropriate factor(s) from the tables provided.) Prepare an amortization table for this installment note. eBook Ask Payments Print Period Ending Date 2017 2018 2019 2020 Total Reterences Beginning Debit Interest Debit Notes Expense Credit Ending Balance Payable Cash Balance 31,000 Mc Graw Hill Prev 1of 1 Next 12:39 PM 4/30/2018u

Explanation / Answer

Please note that yearly payment should be $9,359.54. then only total balance will match to 31,000

Payments A B C D E Period ending Date Beginning balance Debit interest expense Debit note payable Credit cash Ending balance $                             2,017 $                         31,000 31,000*8% = $2,480 $9,360-$2,480 = $6,880 $2,480+$6,880 = $9,360 $31,000-$6,880 = $24,120 $                             2,018 $                         24,120 $24,120*8% = $1,930 $9,360-$1,930 = $7,430 $1,930+$7,430 = $9,360 $24,120-$7,430 = $16,690 $                             2,019 $                         16,690 $16,690*8% = 1,335 $9,360-$1,335 = $8,025 $1,335+$8,025 = $9,360 $16,690-$8,025 = $8,665 $                             2,020 $                           8,665 $8,665*8% = 694 $9,360-$694 = $8,666 $694+$8,666 = $9,360 $                                                - Total $                                     6,439 $                                31,001 $                                 37,440

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