On January 2, 2020, Brook Company acquired machinery by issuing a 4%, $374,000 note due in 5 years on December 31, 2024. Annual payments are
On January 2, 2020, Brook Company acquired machinery by issuing a 4%, $374,000 note due in 5 years on December 31, 2024. Annual payments are $84,175 each December 31. The payment schedule is:
| Year | Annual Payment | Principal Portion of Payment | Interest Portion of Payment | Principal Balance at Year-End | ||||||||||||||
| 2020 | $ | 84,175 | $ | 69,215 | $ | 14,960 | $ | 304,785 | ||||||||||
| 2021 | 84,175 | 71,984 | 12,191 | 232,801 | ||||||||||||||
| 2022 | 84,175 | 74,863 | 9,312 | 157,938 | ||||||||||||||
| 2023 | 84,175 | 77,857 | 6,318 | 80,081 | ||||||||||||||
| 2024 | 84,175 | 80,081 | 4,094 | 0 | ||||||||||||||
Required: Using the information provided, complete the following liabilities section of Brook Companys balance sheet at December 31: (Leave no cells blank - be certain to enter "0" wherever required.)
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Authors: WATNE
1st Edition
0130516163, 978-0130516169
