how ro calculate Q3 principla repaid and interest paid
The following schedule shows the excess of cash receipts over cash disbursements projected for the Zoptic Company for 2021: 01 Q2 03 04 Year Excess (deficiency) of cash available over disbursements $(138,380) $(56,680) $142,780 $57,300 $5,100 The company borrows and repays from an open line of credit in round $100 amounts. Loan related payments are made in periods when cash is available with interest paid on only the portion of any principal being repaid. The current balance (principal plus accrued interest) in the line of credit account is $3,952 for the borrowing that occurred in the last quarter of the previous year. The annual interest rate is 16%. A minimum cash reserve of $600 must be maintained each quarter. The opening balance for the year is expected to be $2.000 Required: Prepare a cash budget assuming that the principal and accrued interest in the line of credit from the end of the previous year is paid immediately, and that interest on borrowing from the first quarter onward is paid at the end of each quarter and principal is repaid when cash is available. Calculate the interest expense for the annual Income statement. Any borrowing will take place at the beginning of a quarter, and any repayments will be made at the end of a quarter. (Do not round intermediate calculations. Any "Repayments", "Interest" and "Deficiency of cash" should be indicated by a minus sign.) ZOPTIC COMPANY Cash Budget For the Year Ended December 31, 2021 Quarter 1 2 3 4 Year $ Cash balance, beginning Excess (deficiency) of cash available over disbursements Cash balance before reserve requirement Deduct: Minimum required reserve 2,000 $ 138,300 (136,300) 600 1,900 $ 56,680 (54,780) 600 600 142,780 143,380 600 0 0 $ 136,900 $ (55,380) $ 142,780 138,200 55,380 01 Balance available for repayment (required borrowing) Financing: Amount borrowed (beginning of period) Principal repaid Interest paid Total financing (or repayments for the period) available Cash balance after financing - Free cash balance Add: Minimum balance $ 138,200 S 55,380 $ 0 $ 0 $ 0 1,300 600 600 The following schedule shows the excess of cash receipts over cash disbursements projected for the Zoptic Company for 2021: 01 Q2 03 04 Year Excess (deficiency) of cash available over disbursements $(138,380) $(56,680) $142,780 $57,300 $5,100 The company borrows and repays from an open line of credit in round $100 amounts. Loan related payments are made in periods when cash is available with interest paid on only the portion of any principal being repaid. The current balance (principal plus accrued interest) in the line of credit account is $3,952 for the borrowing that occurred in the last quarter of the previous year. The annual interest rate is 16%. A minimum cash reserve of $600 must be maintained each quarter. The opening balance for the year is expected to be $2.000 Required: Prepare a cash budget assuming that the principal and accrued interest in the line of credit from the end of the previous year is paid immediately, and that interest on borrowing from the first quarter onward is paid at the end of each quarter and principal is repaid when cash is available. Calculate the interest expense for the annual Income statement. Any borrowing will take place at the beginning of a quarter, and any repayments will be made at the end of a quarter. (Do not round intermediate calculations. Any "Repayments", "Interest" and "Deficiency of cash" should be indicated by a minus sign.) ZOPTIC COMPANY Cash Budget For the Year Ended December 31, 2021 Quarter 1 2 3 4 Year $ Cash balance, beginning Excess (deficiency) of cash available over disbursements Cash balance before reserve requirement Deduct: Minimum required reserve 2,000 $ 138,300 (136,300) 600 1,900 $ 56,680 (54,780) 600 600 142,780 143,380 600 0 0 $ 136,900 $ (55,380) $ 142,780 138,200 55,380 01 Balance available for repayment (required borrowing) Financing: Amount borrowed (beginning of period) Principal repaid Interest paid Total financing (or repayments for the period) available Cash balance after financing - Free cash balance Add: Minimum balance $ 138,200 S 55,380 $ 0 $ 0 $ 0 1,300 600 600
