On January 1, 2021, Norwood borrows $200,000 cash from a bank by signing a five-year installment note bearing 8% interest. The note requires equal payments of $50,091 each year on December 31.

Required:

Complete an amortization table for this installment note.

Prepare the journal entries in which Norwood records the following:

(a) Norwood borrows $200,000 cash by signing a five-year, 8% installment note.

(b) Record the first installment payment on December 31, 2021.

(c) Record the second installment payment on December 31, 2022.

Period Ending Date	Beginning Balance	Debit Interest Expense	+	Debit Notes Payable	=	Credit Cash	Ending Balance
12/31/2021	$200,000selected answer correct	$16,000selected answer correct		$34,091selected answer correct		$50,091selected answer correct	$165,909selected answer correct
12/31/2022	165,909selected answer correct	13,273selected answer correct		36,818selected answer correct		50,091selected answer correct	129,091selected answer correct
12/31/2023	129,091selected answer correct	10,327selected answer correct		39,764selected answer correct		50,091selected answer correct	46,382selected answer incorrect
12/31/2024	89,327selected answer correct	7,146selected answer correct		46,382selected answer incorrect		50,091selected answer correct	0selected answer incorrect
12/31/2025	0
Total		$46,746		$157,055		$200,364

Prepare journal entries to record the notes issuance and each of the first two payments.

No	Date	General Journal	Debit	Credit
1	January 01, 2021	Cashselected answer correct	200,000selected answer correct	not attempted
		Notes payableselected answer correct	not attempted	200,000selected answer correct
2	December 31, 2021	Notes payableselected answer correct	34,091selected answer correct	not attempted
		Bond interest expenseselected answer incorrect	16,000selected answer correct	not attempted
		Cashselected answer correct	not attempted	50,091selected answer correct
3	December 31, 2022	Notes payableselected answer correct	36,818selected answer correct	not attempted
		Bond interest expenseselected answer incorrect	13,273selected answer correct	not attempted
		Cashselected answer correct	not attempted	50,091selected answer correct

• Req 1