Amortizing Mortgage Schedule

Amortizing a Mortgage and the Effect on the Financial Statements

On January 1, 2013, Picard Inc. purchased a new piece of equipment from LaForge Engineering to expand its production facilities. The equipment was purchased at a cost of $800,000. Picard financed the purchase with an $800,000 mortgage to be repaid in annual payments over five years at a rate of 10%. The mortgage was arranged through Pulaski Bank. The annual payments of $211,038 are to be made on December 31 of each year.

1. Prepare a mortgage amortization schedule for the 5-year life of the mortgage. Round to the nearest whole dollar, and adjust the final year's interest expense and principal reduction figures for the cumulative rounding error. If an answer is zero, enter "0".

Picard Inc.
Mortgage Amortization Schedule
		Payment Amount		Interest Expense		Amount Applied to Reduce Principal		Balance
								$800,000
2013		$ 211038		$ 80,000		$ 131,038		668,962
2014		211038		66,896		144,142		524,820
2015		211038		52,482		158,556		366,264
2016		211038		36,626		174,412		191,852
2017		211038		19,186		191,852		0
Totals		1,055,190		255,190		800,000

2. Assuming the equipment is expected to last for five years (with zero salvage value), determine the net amount at which the equipment will be reported on the balance sheet at the end of each year for its 5-year life using straight-line depreciation. Round all calculations to the nearest whole dollar.

		2013		2014		2015		2016		2017
Equipment		$ 800,000		$ 800,000		$ 800,000		$ 800,000		$
Accumulated depreciation
Book value

Problem 12-45

I am not sure how to do this part can someone help me here and show me the process? Thank you