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Please show all work in detail for the amortization table at the bottom. I am so confused on how to do this step by step.
Please show all work in detail for the amortization table at the bottom. I am so confused on how to do this step by step. Thank you so much. The last two screenshots should be placed side by side to make one whole table.
On December 31, 2019, Bramble Company finished consulting services and accepted in exchange a promissory note with a face value of $875,000, a due date of December 31, 2022, and a stated rate of 6%, with interest receivable at the end of each year. The fair value of the services is not readily determinable and the note is not readily marketable. Under the circumstances, the note is considered to have an appropriate imputed rate of interest of 12%. The following interest factors are provided: Interest Rate Table Factors For Three Periods 6% 12% Future Value of 1 1.19102 1.40493 Present Value of 1 0.83962 0.71178 Future Value of Ordinary Annuity of 1 3.18360 3.37440 Present Value of Ordinary Annuity of 1 2.67301 2.40183 Your answer is correct. Determine the present value of the note. Present value of the note $ 748904 Prepare a Schedule of Note Discount Amortization for Bramble Company under the effective interest method. (R O decimal places, e.g. 5,275.) Date Cash Interest (6%) Effective Interest (12%) Discount Amortized 12/31/19 $ ta $ 12/31/20 52500 12/31/21 52500 LLLL 12/31/22 52500 $ 157500 $ ta $ Unamortized Discount Balance Present Value of Note ta ta $ 748904Step by Step Solution
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