Question
On January 1, 2022, a company borrowed $4,000 from a bank for 3 years at 6% interest. The company will repay the loan over the
On January 1, 2022, a company borrowed $4,000 from a bank for 3 years at 6% interest. The company will repay the loan over the 3 years with annual payments of $1,496.44.
The following amortization table has been partially prepared for you.
Period ending date | Beginning Principal Balance | Interest Expense | Principal Decrease | Cash Payment | Ending Principal Balance |
12/31/2022 | A?? | B?? | C?? | D?? | E?? |
12/31/2023 | F?? | 164.61 | 1,331.83 | 1,496.44 | 1,411.73 |
12/31/2024 | 1,411.73 | 84.70 | 1,411.73 | 1,496.43 | G?? |
Required: Using the information above, answer the following questions in the box provided. Show your work for any questions requiring a calculation.
1)What are the correct numbers for letters A,B,C, D, E, F and G? Do not complete a whole table, just list the letters and the numbers (show work for partial credit.
2)Insert a table with 4 columns and prepare the following journal entries:
- the entry for the issuance of the note on January 1 2022
- The entry for both the first and the last payments.
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