Question
On January 1, 2016 Plumbus Inc. is issued a notes payable for $20,400. The note has an interest rate of 4% and will be paid
On January 1, 2016 Plumbus Inc. is issued a notes payable for $20,400. The note has an interest rate of 4% and will be paid semi-annually over two years. The payment terms are a blended payment of $5,358 which includes interest and principal.
Do not enter dollar signs or commas in the input boxes.
Round all answers to the nearest whole dollar.
Complete the table to record the amount of principal and interest for each payment. Note: Due to rounding, make the reduction of the principal in the last payment equal to the remaining principal balance. This will ensure the ending principal balance is $0.
Date
Cash Payment
Interest Expense
Reduction of Principal
Principal Balance
Jul 1 2016
Answer
Answer
Answer
Answer
Jan 1, 2017
Answer
Answer
Answer
Answer
Jul 1, 2017
Answer
Answer
Answer
Answer
Jan 1, 2018
Answer
Answer
Answer
Answer
On January 1, 2016 Plumbus Inc. is issued a notes payable for $20,400. The note has an interest rate of 4% and will be paid semi-annually over two years. The payment terms are a blended payment of $5,358 which includes interest and principal.
Do not enter dollar signs or commas in the input boxes.
Round all answers to the nearest whole dollar.
Complete the table to record the amount of principal and interest for each payment. Note: Due to rounding, make the reduction of the principal in the last payment equal to the remaining principal balance. This will ensure the ending principal balance is $0.
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Fundamental Managerial Accounting Concepts
Authors: Thomas P Edmonds, Philip R Olds
9th Edition
1259969509, 9781259969508
