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Required information [The following information applies to the questions displayed below.] On January 1, Year 1, Mayberry Company borrowed cash from Central Bank by issuing a $75,500 face value 3-year installment note payable that carried a 9% interest rate. The note is to be repaid by making annual cash payments of $29,826.63, which includes both principal and interest. The payments are to be made on December 31 of each year. Required: a) Prepare an amortization schedule for the term of the loan, showing the amounts to be paid on principal and interest for Year 1, Year 2, and Year 3 and the loan balance at the end of each year. Note: Enter all your values as positive values. Round your answers to 2 decimal places. To fully liquidate the liability, the final payment may need to be adjusted slightly because of rounding differences. Date Beginning Balance Payment Interest Principal Ending Balance Year 1 Year 2 Year 3

Required information [The following information applies to the questions displayed below.] On January 1, Year 1, Mayberry Company borrowed cash from Central Bank by issuing a $75,500 face value 3-year installment note payable that carried a 9% interest rate. The note is to be repaid by making annual cash payments of $29,826.63, which includes both principal and interest. The payments are to be made on December 31 of each year. Required: a) Prepare an amortization schedule for the term of the loan, showing the amounts to be paid on principal and interest for Year 1, Year 2, and Year 3 and the loan balance at the end of each year. Note: Enter all your values as positive values. Round your answers to 2 decimal places. To fully liquidate the liability, the final payment may need to be adjusted slightly because of rounding differences. Date Beginning Balance Payment Interest Principal Ending Balance Year 1 Year 2 Year 3

Financial Accounting
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter14: Long-term Liabilities: Bonds And Notes
Section: Chapter Questions
Problem 11E
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Required information [The following information applies to the questions displayed below.] On January 1, Year 1, Mayberry Company borrowed cash from Central Bank by issuing a $75,500 face value 3-year installment note payable that carried a 9% interest rate. The note is to be repaid by making annual cash payments of $29,826.63, which includes both principal and interest. The payments are to be made on December 31 of each year. Required: a) Prepare an amortization schedule for the term of the loan, showing the amounts to be paid on principal and interest for Year 1, Year 2, and Year 3 and the loan balance at the end of each year. Note: Enter all your values as positive values. Round your answers to 2 decimal places. To fully liquidate the liability, the final payment may need to be adjusted slightly because of rounding differences. Date Beginning Balance Payment Interest Principal Ending Balance Year 1 Year 2 Year 3
Transcribed Image Text:Required information [The following information applies to the questions displayed below.] On January 1, Year 1, Mayberry Company borrowed cash from Central Bank by issuing a $75,500 face value 3-year installment note payable that carried a 9% interest rate. The note is to be repaid by making annual cash payments of $29,826.63, which includes both principal and interest. The payments are to be made on December 31 of each year. Required: a) Prepare an amortization schedule for the term of the loan, showing the amounts to be paid on principal and interest for Year 1, Year 2, and Year 3 and the loan balance at the end of each year. Note: Enter all your values as positive values. Round your answers to 2 decimal places. To fully liquidate the liability, the final payment may need to be adjusted slightly because of rounding differences. Date Beginning Balance Payment Interest Principal Ending Balance Year 1 Year 2 Year 3
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