Good-Deal Inc. developed a new sales gimmick to help sell its inventory of new automobiles. Because many new car buyers need financing, Good-Deal offered a low downpayment and low car payments for the first year after purchase. It believes that this promotion will bring in some new buyers.

On January 1, 2014, a customer purchased a new $37,360automobile, making a downpayment of $1,120. The customer signed a note indicating that the annual rate of interest would be8% and that quarterly payments would be made over 3 years. For the first year, Good-Deal required a $453quarterly payment to be made on April 1, July 1, October 1, and January 1, 2015. After this one-year period, the customer was required to make regular quarterly payments that would pay off the loan as of January 1, 2017.

(a) Prepare a note amortization schedule for the first year. (Round answers to 0 decimal places, e.g. 38,548.)

Date	Cash Paid	Interest Expense	Discount Amortized	Carrying Amount of Note
1/1/14	$	$	$	$
4/1/14
7/1/14
10/1/14
1/1/15

(b) Indicate the amount the customer owes on the contract at the end of the first year. (Round answer to 0 decimal places, e.g. 38,548.)

The customer owes on the contract at the end of the first year

$

(c) Compute the amount of the new quarterly payments. (Round answer to 0 decimal places, e.g. 38,548.)

The new quarterly payments

$

(d) Prepare a note amortization schedule for these new payments for the next2years. (Round answers to 0 decimal places, e.g. 38,548.)

Date	Cash Paid	Interest Expense	Discount Amortized	Carrying Amount of Note
1/1/15	$	$	$	$
4/1/15
7/1/15
10/1/15
1/1/16
4/1/16
7/1/16
10/1/16
1/1/17