Concord Inc. received a five-year bank loan bearing interest at 7% with principal and interest instalment payments due annually. Thefollowing instalment payment schedule is partially completed:(a)Fill in the missing amounts. (Round answers to O decimal places, e.g 2,345.)Cash Payment$17,171EAInterest Expense4,0712,1731,129*Reduction of Principal$12,24314,01716,042Principal Balance$70,40058,15745,05716,042

Cash payment remains same throughout the period of bank loan. Interest expense is calculated on the…

Answered: Concord Inc. received a five-year bank…

Concord Inc. received a five-year bank loan bearing interest at 7% with principal and interest instalment payments due annually. The following instalment payment schedule is partially completed:

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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Question

Concord Inc. received a five-year bank loan bearing interest at 7% with principal and interest instalment payments due annually. The
following instalment payment schedule is partially completed:
(a)
Fill in the missing amounts. (Round answers to O decimal places, e.g 2,345.)
Cash Payment
$17,171
EA
Interest Expense
4,071
2,173
1,129*
Reduction of Principal
$12,243
14,017
16,042
Principal Balance
$70,400
58,157
45,057
16,042

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