Example 14.3: AS&K, Inc. borrowed $250,000 by issuing an 8%, three-year note on January 1,2014. AS&K must make payments every six months, beginning June 30,2014. The note will be fully paid at maturity on December 31,2016. AS&K prepares annual financial statements. Prepare the amortization table for this note, along with any necessary journal entries. Also prepare the t-account for the notes payable account.

1) is this correct and using the right formulas? 2) please prepare the t-account for notes payable acct

Example 14.3: AS&K, Inc. borrowed $250,000 by issuing an 8%, three-year note on January 1, 2014. AS&K must make payments every six months, beginning June 30,2014. The note will be fully paid at maturity on December 31,2016. AS&K prepares annual financial statements. Prepare the amortization table for this note, along with any necessary journal entries. Also prepare the t-account for the notes payable account. N I/Y PMT FV Excel Formula Given 6 4.00% 250,000 Solve for PMT (47,690) =PMT10.04,6,250000,0) PV 0 Principal we borrowed on January 1, 2014 250000 Annual Interest Rate 8% Years 3 PV of all semiannual installment payments in the future 250000 Semiannual Interest rate 4% Semiannual periods 6 Semiannual installment payment ($47,690.48) Period = Prior Carrying Value x Semiannual Interest Rate Date Total Payment (A) Interest Payment (B) Principal Payment (A-B) 0 1 6/30/2014 ($47,690.48) 10,000.00 -ABS(E24)-F24 2 12/31/2014 ($47,690.48) $ 8,492.38 $39,198.09 3 6/30/2015 ($47,690.48) $ 6,924.46 $40,766.02 4 12/31/2015 ($47,690.48) $ 5,293.82 $42,396.66 5 6/30/2016 ($47,690.48) $ 3,597.95 $44,092.53 6 12/31/2016 ($47,690.48) $ 1,834.25 $45,856.23 Carrying Value (Prior CV - Principal paid) 250000 $ 212,310 $ 173,111 $ 132,345 $ 89,949 $ 45,856 $