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On January 1, 2014, Ludwig Inc borrowed $289,000 from the bank. Interest is calculated at the rate of 10% and the term of the note
On January 1, 2014, Ludwig Inc borrowed $289,000 from the bank. Interest is calculated at the rate of 10% and the term of the note is four years, Four equal annual payments will be made in the amount of $91,171 sach December 31. The payment schedule is shown below: Year 2014 2015 2016 2017 Annual Principal Portion of Payment Payment 91,171 62,271 91,171 68,498 91,171 75,348 91,171 82,883 Interest Portion of Payment 28,900 22,673 15,823 8,288 Principal Balance at Year-End 226,729 158,231 82,883 0 a) Show how Ludwig Inc. will show the note on the year-end December 31, 2014 balance sheet. Liabilities Current Liabilities: (Select one) Long Term Liabilities: (Select one) b) Show how Ludwig Inc. will show the note on the year-end December 31, 2015 balance sheet. Liabilities Current Liabilities: (Select one) Long Term Liabilities: (Select one)
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