On January 1, 2017, Eagle borrows $19,000 cash by signing a four-year, 8% instal
ID: 2575115 • Letter: O
Question
On January 1, 2017, Eagle borrows $19,000 cash by signing a four-year, 8% installment note. The note requires four equal total payments of accrued interest and principal on December 31 of each year from 2017 through 2020. (Table B.1, Table B.2, Table B.3, and Table B.4) (Use appropriate factor(s) from the tables provided.)
Prepare an amortization table for this installment note.
Payments (A) (B) (C) (D) (E) Period Ending Beginning Debit Interest Debit Notes Credit Ending Date Balance Expense Payable Cash Balance 2015 2016 2017 2018 Total $0 $0Explanation / Answer
Amortization table
(A)
(B) = (A)*8%
(C) = (A+B)
(D) = equal installment calculated above
(E) = (C-D)
Period
Beginning balance
Interest expense
(Beginning balance *8%)
Notes payable
cash credit
Ending balance
2015
$19,000.00
$1,520.00
$20,520.00
$5,736.50
$14,783.50
2016
$14,783.50
$1,182.68
$15,966.18
$5,736.50
$10,229.68
2017
$10,229.68
$818.37
$11,048.05
$5,736.50
$5,311.55
2018
$5,311.55
$424.92
$5,736.48
$5,736.50
($0.02)
Total
$3,945.98
$22,946.00
Amortization table
(A)
(B) = (A)*8%
(C) = (A+B)
(D) = equal installment calculated above
(E) = (C-D)
Period
Beginning balance
Interest expense
(Beginning balance *8%)
Notes payable
cash credit
Ending balance
2015
$19,000.00
$1,520.00
$20,520.00
$5,736.50
$14,783.50
2016
$14,783.50
$1,182.68
$15,966.18
$5,736.50
$10,229.68
2017
$10,229.68
$818.37
$11,048.05
$5,736.50
$5,311.55
2018
$5,311.55
$424.92
$5,736.48
$5,736.50
($0.02)
Total
$3,945.98
$22,946.00
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