Question
Coronado Hage has just approached a bank for financing for his new restaurant, Bonita Sally. The bank is willing to loan Bonita Sally Inc. $400,000
Coronado Hage has just approached a bank for financing for his new restaurant, Bonita Sally. The bank is willing to loan Bonita Sally Inc. $400,000 at a high-risk interest rate of 7%. The loan is payable over three years in quarterly payments of $37,246. Bonita Sally received the loan on April 30, 2021. It made the first payment on July 31. The companys year end is October 31.
Prepare an instalment payment schedule for the three years. (Round answers to the nearest whole dollar, e.g. 5,275.)
| Period | Cash Payment | Interest Expense | Principal Reduction | Balance | |||||||||
| Apr. 30, 2021 | $ | ||||||||||||
| July 31, 2021 | $ | $ | $ | ||||||||||
| Oct. 31, 2021 | |||||||||||||
| Jan. 31, 2022 | |||||||||||||
| Apr. 30, 2022 | |||||||||||||
| July 31, 2022 | |||||||||||||
| Oct. 31, 2022 | |||||||||||||
| Jan. 31, 2023 | |||||||||||||
| Apr. 30, 2023 | |||||||||||||
| July 31, 2023 | |||||||||||||
| Oct. 31, 2023 | |||||||||||||
| Jan. 31, 2024 | |||||||||||||
| Apr. 30, 2024 | * | ||||||||||||
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Financial Accounting
Authors: Walter T. Harrison Jr., Charles T. Horngren, C. William Thomas, W. Morley Lemon, Catherine Seguin, Sandra Robertson Lemon
4th Canadian Edition
0131384333, 9780131384330
