Problem 14-6A Installment notes LO C1

On November 1, 2017, Norwood borrows $500,000 cash from a bank by signing a five-year installment note bearing 8% interest. The note requires equal payments of $125,229 each year on October 31. (Table B.1, Table B.2, Table B.3, and Table B.4) (Use appropriate factor(s) from the tables provided.)

Required:

1. Complete an amortization table for this installment note.

2. Prepare the journal entries in which Norwood records the following: (a) Accrued interest as of December 31, 2017 (the end of its annual reporting period).

(b) The first annual payment on the note.

Complete an amortization table for this installment note. (Round your intermediate calculations to the nearest dollar amount.) Period Ending Beginning Debit Interest + Debit Notes -Credit CashEnding Balance Date 10/31/2018 10/31/2019 10/31/2020 0/31/2021 10/31/2022 Total Balance Expense Payable