Entries for Installment Note Transactions On January 1, Year 1, Bryson Company obtained a $47,000, four-year,...

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Entries for Installment Note Transactions On January 1, Year 1, Bryson Company obtained a $47,000, four-year, 9% installment note from Campbell Bank. The note requires annual payments of $14,507, beginning on December 31, Year 1. a. Prepare an amortization table for this installment note, similar to the one presented in Exhibit 4. Note: Enter all amounts to the nearest whole dollar. Round Year 4 Interest Expense (up or down) to ensure the carrying amount is zero at the end of the note term. Year Ending December 31 Amortization of Installment Notes Interest Expense (7% of January 1 Note Carrying Amount) December 31 Carrying Amount January 1 Carrying Amount Note Payment Decrease in (Cash Paid) Notes Payable Year 1 $ 47,000 14,507 3,290 X $ 11,217 X Year 2 35,783 X 14,507 2,505 X 12,002 X Year 3 28,781 X 14,507 1,665 X Year 4 10,939 X 14,507 58,028 3,568 X 11,028 V 12,842 X 10,939 X 47,000 $ 35,783 X 23,781 X 10,939 X Accounting numeric field Feedback Check My Work a. Review Exhibit 4 in the text. The cash payment is the same in each year. The interest and principal repayment, however, change each year. This is because the carrying amount (book value) of the note decreases each year as principal is repaid, which decreases the interest. After the final payment, the carrying amount on the note is zero, indicating that the note has been paid in full. Entries for Installment Note Transactions On January 1, Year 1, Bryson Company obtained a $47,000, four-year, 9% installment note from Campbell Bank. The note requires annual payments of $14,507, beginning on December 31, Year 1. a. Prepare an amortization table for this installment note, similar to the one presented in Exhibit 4. Note: Enter all amounts to the nearest whole dollar. Round Year 4 Interest Expense (up or down) to ensure the carrying amount is zero at the end of the note term. Year Ending December 31 Amortization of Installment Notes Interest Expense (7% of January 1 Note Carrying Amount) December 31 Carrying Amount January 1 Carrying Amount Note Payment Decrease in (Cash Paid) Notes Payable Year 1 $ 47,000 14,507 3,290 X $ 11,217 X Year 2 35,783 X 14,507 2,505 X 12,002 X Year 3 28,781 X 14,507 1,665 X Year 4 10,939 X 14,507 58,028 3,568 X 11,028 V 12,842 X 10,939 X 47,000 $ 35,783 X 23,781 X 10,939 X Accounting numeric field Feedback Check My Work a. Review Exhibit 4 in the text. The cash payment is the same in each year. The interest and principal repayment, however, change each year. This is because the carrying amount (book value) of the note decreases each year as principal is repaid, which decreases the interest. After the final payment, the carrying amount on the note is zero, indicating that the note has been paid in full.