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Dandy Candy bought a delivery vehicle for $45,000 by issuing an 8% installment note on January 1, 2021. Dandy will make 12 monthly payments of
Dandy Candy bought a delivery vehicle for $45,000 by issuing an 8% installment note on January 1, 2021. Dandy will make 12 monthly payments of $3,914.50 at the end of each month.
Cash | Reduction of | Note | ||
---|---|---|---|---|
Period | Payment | Interest Exp | Note Payable | Payable |
(Credit) | (Debit) | (Debit) | Balance | |
At issue | --- | --- | --- | $45,000.00 |
01/31/21 | $3,914.50 | $300.00 | $3,614.50 | 41,385.50 |
02/28/21 | 3,914.50 | ? | ? | ? |
03/31/21 | 3,914.50 | ? | ? | ? |
04/30/21 | 3,914.50 | ? | ? | ? |
05/31/21 | 3,914.50 | ? | 3,711.85 | 26,684.93 |
Required: | |
Using the partially completed amortization table above, prepare the journal entries for the end of March and the end of April. |
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