Culver purchased a new piece of equipment to be used in its new facility. The $378,000 piece of equipment was purchased with a $53,000 down payment and with cash received through the issuance of a $325,000, 9%, 5-year mortgage payable issued on January 1, 2022. The terms provide for annual installment payments of $83,555 on December 31. (a) Prepare an installment payments schedule for the five payments of the notes payable. (Round answers to 0 decimal places, e.g. 15,250.) Your answer is correct. Annual Interest Period Issue Date 1 2 Cash Payment 83,555 83.555 83,555 Interest Expense 29,250 24,363 19,035 Reduction of Principal 54,305 59,192 64,520 Principal Bal
Culver purchased a new piece of equipment to be used in its new facility. The $378,000 piece of equipment was purchased with a $53,000 down payment and with cash received through the issuance of a $325,000, 9%, 5-year mortgage payable issued on January 1, 2022. The terms provide for annual installment payments of $83,555 on December 31. (a) Prepare an installment payments schedule for the five payments of the notes payable. (Round answers to 0 decimal places, e.g. 15,250.) Your answer is correct. Annual Interest Period Issue Date 1 2 Cash Payment 83,555 83.555 83,555 Interest Expense 29,250 24,363 19,035 Reduction of Principal 54,305 59,192 64,520 Principal Bal
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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