Gingerbread Corp was issued a $250,000 loan at 8% with a five year maturity date. The partial amortization schedule prepared by the company accountant is presented below. What will the company record for interest expense in period 4? (round decimal up to the nearest whole $) Interest expense in period four ?
Gingerbread Corp was issued a $250,000 loan at 8% with a five year maturity date. The partial amortization schedule prepared by the company accountant is presented below. What will the company record for interest expense in period 4? (round decimal up to the nearest whole $) Interest expense in period four ?
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter11: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 11.18E
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Gingerbread Corp was issued a $250,000 loan at 8% with a five year maturity date. The partial amortization schedule prepared by the company accountant is presented below.
What will the company record for interest expense in period 4? (round decimal up to the nearest whole $)
Interest expense in period four ?
Transcribed Image Text:Principal
Payment
Annual
Interest
Principal
Balance
250,000
207,386
161,363
111,658
Period
Payment
Еxpense
1
62,614
62,614
62,614
62,614
62,614
20,000
16,591
12,909
42,614
46,023
49,705
2
3
4
5
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