On January 1, a company borrowed cash by issuing a $390,000, 4%, installment note to be paid in three equal payments at the end of each year beginning December 31. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) What would be the amount of each installment? Prepare an amortization table for the installment note. Prepare the journal entry for the second installment payment.

Annual Payment

What would be the amount of each installment? (Round final answers to the nearest whole dollar.)

Table or calculator function:
Amount Borrowed:
n =
i =
Annual Payment:

Amort Table

Prepare an amortization table for the installment note. (Round your intermediate calculations to the nearest dollar. Round final answers to the nearest whole dollar.)

	Cash Payment	Interest Expense	Decrease in Balance	Outstanding Balance
				$390,000
1
2
3
Total

Record the second installment payment.

Note: Enter debits before credits.

Event	General Journal	Debit	Credit
1