Use the information in Exercise 14-14 to prepare the journal entries for Eagle to record the loan on January 1, 2013, and the four payments from December 31, 2013, through December 31, 2016.
In Exercise 14-14, On January 1, 2013, Eagle borrows $ 100,000 cash by signing a four-year, 7% installment note. The note requires four equal total payments of accrued interest and principal on December 31 of each year from 2013 through 2016.
1. Compute the amount of each of the four equal total payments.
2. Prepare an amortization table for this installment note like the one in Exhibit 14.14.

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Payments Period Ending Date Debit Interest Debit Credit Ending Balance Beginning Notes Balance Expense + Payable Cash 8% (A) (computed) (A)- (C) () 12131/2013 $60,000 4,800 4,146 3,439 2,676 1,852 961 $17,874 $ 8,179 8,833 9.540 10,303 11,127 12,018 $60,000 $12,979 $51,821 42,988 33.448 23.145 12,018 12.979 12,979 2.979 2,979 2,979 $77,874 (2) 1231/2014.... 51.82 (3) 12/31/2015. ..42.988 33.448 23.145 12,018 (4) 1231/2016 .. (6) 12/31/2018. . . Equal Total Decreasing Increasing Principal Component Payments Interest PrincipalAccrued Interest 2013 $4,800 $8,179 2014 $4,146 $8,833 2015$3,439 $9,540 2016 $2,676 $10,303 2017 $1,852 $11,127 2018 $961 $12,018 0 $2,500 $5,000 $7,500 $10,000 $12,500 $15,000 Cash Payment Pattern