Problem 14-6A Installment notes LO C1 On November 1, 2017, Norwood borrows $500,
ID: 2339137 • Letter: P
Question
Problem 14-6A Installment notes LO C1
On November 1, 2017, Norwood borrows $500,000 cash from a bank by signing a five-year installment note bearing 8% interest. The note requires equal payments of $125,229 each year on October 31. (Table B.1, Table B.2, Table B.3, and Table B.4) (Use appropriate factor(s) from the tables provided.)
Required:
1. Complete an amortization table for this installment note.
Complete an amortization table for this installment note. (Round your intermediate calculations to the nearest dollar amount.) Period Ending Beginning Debit Interest + Debit Notes -Credit CashEnding Balance Date 10/31/2018 10/31/2019 10/31/2020 0/31/2021 10/31/2022 Total Balance Expense PayableExplanation / Answer
1 Period ending Beginning balance Debit interest expense Debit notes payable Credit cash Ending balance 10/31/2018 500000 40000 85229 125229 414771 10/31/2019 414771 33182 92047 125229 322724 10/31/2020 322724 25818 99411 125229 223313 10/31/2021 223313 17865 107364 125229 115949 10/31/2022 115949 9280 115949 125229 0 Total 126145 500000 626145 2a Dec-31-17 Interest expense 6667 =500000*8%/12*2 Interest payable 6667 2b Oct-31-18 Interest payable 6667 Interest expense 33333 Notes payable 85229 Cash 125229