Exercise 10-2B Amortization schedule for an installment note On January 1, Year 1, Monroe Co. borrowed $80,000 cash from First Bank by issuing a four-year, 6 percent note. The principal and interest are to be paid by making annual payments in the amount of $23,087. Payments are to be made December 31 of each year, beginning December 31, Year 1. Required Prepare an amortization schedule for the interest and principal payments for the four-year period. Monroe Co. Amortization Schedule $80,000, 4year Term Note, 6% Interest Year Year 1 Principal Principal Balance Cash Payment Applied to Applied to Balance End of on Jan 1 Dec 31 Interest Principal Period $ 80,000 $ 23,087 $ 4,800 $ 18,287 $ 61,713 Year 2 Year 3 Year 4 CASCADE COMPANY Financial Statements For the Year Ended December 31, Year 1 Income Statement Revenues Expenses Net Income 35,000 18.100 16,900 Barte Capital Statement Beginning Capital Balance Plus: Capital Acquired from Owner Plus: Net Income Less: Withdrawal by Owner Ending Capital Balance Balance Sheet As of December 31, Year 1 Assets Cash Total Assets Liabilities Equity Carl Cascade, Capital Total Liabilities and Equity Statement of Cash Flows For the Year Ended December 31, Year 1 Cash Flows from Operating Activities: Receipts from Revenue Paid for Expenses Net Cash Flow from Operating Activities Cash Flows from Investing Activities Cash Flows from Financing Activities: Proceeds from Owner Paid for Owner Withdrawals Net Cash Flow from Financing Activities Net Change in Cash Plus: Beginning Cash Balance Ending Cash Balance CASCADE COMPANY $ Sole proprietorship Initial cash investment 1/1/Year 1 Cash revenue Year 1 Cash expenses Year 1 Cash distributions paid Year 1 60,000 35,000 18,100 4,000 Partnership Initial investment, Cad Cascade Initial investment, Beth Cascade % profit to Cart Cascade % profit to Beth Cascade Cash distribution, Car Cascade Cash distribution, Beth Cascade 24,000 36,000 40% 60% 1,600 2,400 Corporation Common shares issued Par value per common share Cash received for shares 5,000 $ $ 60,000