Michael Scott Paper Company (MSPC) started their operations late in July 2018. The owner (Michael Scott) assumed he could run the company from his apartment, however, due to covenants in his housing contract he was unable to run his business from home. As a result, Michael decided to buy a warehouse. After much deliberation and consideration, he determined that leasing a warehouse would be more financially viable than buying one.

Michael reached out to an old friend who helped him lease a warehouse from Darrel Inc. The warehouse has a current value of $279,979.35. The lease calls for MSPC to make 30 annual payments of $27,000 beginning January 1^st, 2019, which is the beginning of the lease, and at each January 1^st, thereafter. The warehouses useful life is 50 years. The going interest rate for warehouse rental in the area is 10%. Assume that the annual amortization expense for the prior period is recorded at the same time as the annual lease payment.

Fill out the attached amortization schedule

Payment Effective Interest Decrease in Balance Outstanding Balance Date 1/1/191 1/1/191 1/1/201 1/1/21 1/1/22 1/1/23 1/1/241 1/1/251 1/1/26 1/1/271 1/1/28 1/1/29 1/1/30 1/1/31 1/1/321 1/1/33 1/1/35 1/1/371 1/1/391 1/1/41 1/1/421 1/1/431 1/1/441 1/1/451 1/1/461 1/1/471 1/1/48