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Help with this please Problem 14-3 Good-Deal Inc. developed a new sales gimmick to help sell its inventory of new automobiles. Because many new car
Help with this please
Problem 14-3 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 $33,600automobile, making a downpayment of $1,200. 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 $405quarterly 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 |
The customer owes on the contract at the end of the first year | $ |
The new quarterly payments | $ |
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 |
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