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On August 1, 2020, Jill borrowed $90,000 at 5% from Jack and agreed to make annual payments of $20,788 for 5 years. 1. Complete the
On August 1, 2020, Jill borrowed $90,000 at 5% from Jack and agreed to make annual payments of $20,788 for 5 years. 1. Complete the amortization table below. Round all calculations to the nearest dollar. 2. Prepare all necessary journal entries to record the receipt of funds, adjusting entries at year end and the first payment. Beginning Principal Balance Principal Reduction Ending Principal Balance Payment Interest 2020 90,000 20,788 4,500 16,288 73,712 2021 56,610 2022 38,652 2023 19,797 2024 19,797 20,788 990 19,798 (1)
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