On January 1, Year 1, Beatie Company borrowed $330,000 cash from Central Bank by issuing a five-year, 6 percent note. The principal and interest are to be paid by making annual payments in the amount of $78,341. Payments are to be made December 31 of each year beginning December 31, Year 1. Required Prepare an amortization schedule for the interest and principal payments for the five-year period. Note: Round your answers to the nearest dollar amount. BEATIE COMPANY Amortization Schedule Year Principal Balance on January 1 Cash Payments December 31 Applied to Interest Applied to Principal Principal Balance End of Period Year 1 Year 2 Year 3 Year 4 Year 5
On January 1, Year 1, Beatie Company borrowed $330,000 cash from Central Bank by issuing a five-year, 6 percent note. The principal and interest are to be paid by making annual payments in the amount of $78,341. Payments are to be made December 31 of each year beginning December 31, Year 1. Required Prepare an amortization schedule for the interest and principal payments for the five-year period. Note: Round your answers to the nearest dollar amount. BEATIE COMPANY Amortization Schedule Year Principal Balance on January 1 Cash Payments December 31 Applied to Interest Applied to Principal Principal Balance End of Period Year 1 Year 2 Year 3 Year 4 Year 5
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 1PA: On January 1, 2018, King Inc. borrowed $150,000 and signed a 5-year, note payable with a 10%...
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Transcribed Image Text:On January 1, Year 1, Beatie Company borrowed $330,000 cash from Central Bank by issuing a five-year, 6 percent note. The principal
and interest are to be paid by making annual payments in the amount of $78,341. Payments are to be made December 31 of each year
beginning December 31, Year 1.
Required
Prepare an amortization schedule for the interest and principal payments for the five-year period.
Note: Round your answers to the nearest dollar amount.
BEATIE COMPANY
Amortization Schedule
Year
Principal
Balance on
January 1
Cash
Payments
December 31
Applied to
Interest
Applied to
Principal
Principal
Balance End of
Period
Year 1
Year 2
Year 3
Year 4
Year 5
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