Subject:AccountingPrice: Bought3
Cucina Corp. signed a new installment note on January 1, 2018, and deposited the proceeds of $62,000 in its bank account. The note has a 3-year term, compounds 5 percent interest annually, and requires an annual installment payment on December 31. Cucina Corp. has a December 31 year-end and adjusts its accounts only at year-end.
Required:
Use an online application, such as the loan calculator with annual payments at mycalculators.com, to generate an amortization schedule. Enter that information into an amortization schedule with the following headings: Year, Beginning Notes Payable, Interest Expense, Repaid Principal on Notes Payable, and Ending Notes Payable. (Do not round intermediate calculations. Round final answers to nearest whole dollar.)
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Record the signing of the installment note on January 1, 2018.
2
Record the installment payment on December 31, 2018.
3
Record the installment payment on December 31, 2019.
4
Record the installment payment on December 31, 2020.
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