PREPARING A LIABILITY TABLE FOR A NOTE. On January 1, 19x3, Distel Company borrowed $25,900 on a 3-year, 8.5% interest-bearing note with a face amount of $25,000. The note requires annual interest payments on December 31 (each equal to 8.5% of $25,000).

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REQUIRED: Prepare a note liability table using the following column headings: INTEREST PERIOD ENDING INTEREST EXPENSE CASH PAYMENT CHANGE IN LIABILITY LIABILITY BALANCE BALANCE