Question
On January 1, Year 1, Mahoney Company borrowed $174,000 cash from Sun Bank by issuing a 5-year, 8% term note. The principal and interest are
On January 1, Year 1, Mahoney Company borrowed $174,000 cash from Sun Bank by issuing a 5-year, 8% term note. The principal and interest are repaid by making annual payments beginning on December 31, Year 1. The annual payment on the loan equals $40,875. What is the amount of principal repayment included in the payment made on December 31, Year 1? Multiple Choice
a $13,920
b $26,955
c $37,605
d $40,875
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Accounting Principles Volume 1
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak
8th Canadian Edition
978-1119502425
