Presented below is a partial amortization schedule for a three-year installment note requiring monthly payments of $1,128.11.(1)Date(2)Cash Paid11/1/202411/30/2024$1,128.1112/31/20241,128.1110/31/20271,128.11(3)Interest ExpenseCarrying Value xInterest Rate$240.00234.08(4)Decrease inCarrying Value(2) (3)$888.11894.037.471,120.64(5)Carrying ValuePrior Carrying Value(4)$36,000.0035,111.8934,217.8601. What is the principal amount of the note?2. What is the total number of monthly payments?3. What is the total cash paid over the entire period of the note? (Round your answer to 2 decimal places.)4. What is the total amount of interest paid over the entire period of the note? (Do not round your intermediate calculations. Rounyour answer to 2 decimal places.)5. The portion of the monthly payment that reduces the carrying value (increases/decreases) over time.1. Principal amount2. Total number of monthly payments3. Total cash paid4. Total amount of interest paid5. The portion of the monthly payment that reduces the carrying value (increases/decreases) over time.

Part 2: Explanation:1. To find the principal amount of the note, we look at the initial carrying…

Answered: Presented below is a partial…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The following amortization schedule indicates the interest and principal that Chip’s Cookie Corporation (CCC) must repay on an installment note established January 1, 2021. CCC has a December 31 year-end and makes the required annual payments on December 31. Year Beginning Notes Payable Interest Expense Repaid Principal on Notes Payable Ending Notes Payable 1 39,000 2,730 8,784 30,216 2 30,216 2,115 9,399 20,817 3 20,817 1,457 10,057 10,760 4 10,760 753 10,760 0 Total 7,055 39,000 Use the amortization schedule to determine (a) the amount of the (rounded) annual payment; (b) the amount of interest expense to report in the year ended December 31, 2021 (Year 1); (c) the note payable balance at January 1, 2024; and (d) the total interest and total principal paid over the note’s entire life. (Round your answers to the nearest whole dollar amount.)
Presented below is a partial amortization schedule for a three-year Installment note requiring monthly payments of $1,974.19. () Interest Expense (4) Decrease in Carrying Value (1) Date (2) Cash Paid Carrying Value (S) Carrying Value Prior Carrying Value Interest Rate (2)-83) (4) 11/1/2024 11/30/2024 $1,974.19 12/31/2024 1,974.19 $420.00 409.64 $1,554.19 1,564,55 $63,000.00 61,445.81 59,881.26 10/31/2027 1,974.19 13.07 1,961.12 1. What is the principal amount of the note? 2. What is the total number of monthly payments? 3. What is the total cash paid over the entire period of the note? (Round your answer to 2 decimal places.) 4. What is the total amount of interest paid over the entire period of the note? (Do not round your intermediate calculations. Round your answer to 2 decimal places.) 5. The portion of the monthly payment that reduces the carrying value (increases/decreases) over time. 1. Principal amount 2. Total number of monthly payments 3. Total cash paid 4 Total amount of…
The following amortization schedule indicates the interest and principal that Chip's Cookie Corporation (CCC) must repay on an installment note established January 1, 2021. CCC has a December 31 year-end and makes the required annual payments on December 31. Year 1 2 3 4 Total Beginning Notes Payable 52,000 40,629 28, 235 14,725 Repaid Principal Interest Expense on Notes Payable (a) Annual Payment (b) Interest Expense (c) Notes Payable (d-1) Total Interest (d-2) Total Principal 4,680 3,657 2,541 1,325 12, 203 11,371 12,394 13,510 14,725 52,000 Ending Notes Payable 40,629 28,235 14,725 0 Use the amortization schedule to determine (a) the amount of the (rounded) annual payment; (b) the amount of interest expense to report in the year ended December 31, 2021 (Year 1); (c) the note payable balance at January 1, 2024; and (d) the total interest and total principal paid over the note's entire life. (Round your answers to the nearest whole dollar amount.)
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A partial amortization schedule for a 5-year note payable that Mabry Company issued on January 1, 2018, is shown as follows. accounting period principal balance cash payment app. to interest app to principal 2018 136000 34965 12240 22725 2019 113275 34965 10195 24770 2020 88505 34965 7965 27000 what is the amount of interest expense on the loan for 2021? *forgot to add what year it was asking for in the previous problem*

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