ASAP... I need help in this exercise plz.The book is financial and managerial ac

Question

ASAP... I need help in this exercise plz.The book is financial and managerial accounting wild, 6e   Chapter 10 problem 10-6A

Problem 10-6A Installment notes LO C On November 1, 2015, Norwood borrows $460,000 cash from a bank by signing a five-year installment note bearing 9% interest. The note requires equal total payments each year on October 31, (Table L Table B.2, Table B.3, and Table B.4) (Use appropriate factor(s) from the tables provided.) Required 1. Complete the below table to calculate the total amount of each installment payment. Initial Cash Proceeds Amount of annual payment PV Factor 2. Complete an amortization table for this installment note. (Round your intermediate calculations to the nearest dollar amount.) Period Ending Beginning Debit Interest +Debit Notes Ending Balance Balance Expense Payable Date 10/31/2016 10/31/2017 10/31/2018 10/31/2019 10/31/2020 Total

Explanation / Answer

Answer 1. Amount of Annual Payment = $460,000 / 3.88965 Amount of Annual Payment = $118,262.57 or say $118,263 (Approx.) Answer 2. Period Ending Date Beginning Balance Debit Interest Expense + Debit Notes Payable = Credit Cash Ending Balance 10/31/2015                         -                                  -                           -                          -                  460,000 10/31/2016             460,000                      41,400                76,863            118,263                383,137 10/31/2017             383,137                      34,482                83,781            118,263                299,356 10/31/2018             299,356                      26,942                91,321            118,263                208,035 10/31/2019             208,035                      18,723                99,540            118,263                108,496 10/31/2020             108,496                         9,768              108,495            118,263                             0 Answer 3. Journal Entry S. No. Date Particulars Dr. Amt. Cr. Amt. a. 31-Dec-15 Interest Expense        6,900.00 $460,000 X 9% X 2/12    Interest Payable        6,900.00 $460,000 X 9% X 2/12 (To record the interest expense) b. 31-Oct-16 Notes Payable      76,863.00 Interest Expense      34,500.00 Interest Payable        6,900.00    Cash    118,263.00 (To record the installment paid)

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