On January 1, 2014, Bye Bye Manufacturing borrowed $84,000 from the bank. Interest is calculated at the rate of 4% and the term of the note is four years. Four equal annual payments will be made in the amount of $23,141 each December 31. The payment schedule is shown below:

Show how Bye Bye Manufacturing will show the note on its year-end:
1. December 31, 2014, balance sheet.
2. December 31, 2015, balancesheet.

Transcribed Image Text:

Annual Payment Principal Portion of Payment Interest Portion of Payment Principal Balance at Year-End Year 2014 2015 2016 2017 $23,141 23,141 23,141 23,141 $19,781 20,572 21,395 22,252 $3,360 2,569 1,746 889 $64,219 43,647 22,252