A company purchased two new trucks for a total of $250,000 on January 1,2009.The company paid $40,000 cash and gave a $210,000,3-year,8% note for the remaining balance.The note is to be paid in three annual end-of-year payments beginning December 31,2009.Assume the annual installment payments are to consist of equal amounts of principal plus accrued interest.Prepare a note amortization table using the format below.
$\begin{array}{|l|c|c|c|c|c|}
\hline\begin{array}{c}
\text { Period } \
\text { Ending Date }
\end{array} & \begin{array}{c}
\text { Beginning } \
\text { Balance }
\end{array} & \begin{array}{c}
\text { Debit Interest } \
\text { Expense }
\end{array} & \begin{array}{c}
\text { Debit Notes } \
\text { Payable }
\end{array} & \text { Credit Cash } & \begin{array}{c}
\text { Ending } \
\text { Balance }
\end{array} \
\hline 12 / 31 / 09 & & & & & \
\hline 12 / 31 / 10 & & & & & \
\hline 12 / 31 / 11 & & & & &\
\hline
\end{array}$

Question

A company purchased two new trucks for a total of $250,000 on January 1,2009.The company paid $40,000 cash and gave a $210,000,3-year,8% note for the remaining balance.The note is to be paid in three annual end-of-year payments beginning December 31,2009.Assume the annual installment payments are to consist of equal amounts of principal plus accrued interest.Prepare a note amortization table using the format below.
 $\begin{array}{|l|c|c|c|c|c|}
\hline\begin{array}{c}
\text { Period } \
\text { Ending Date }
\end{array} & \begin{array}{c}
\text { Beginning } \
\text { Balance }
\end{array} & \begin{array}{c}
\text { Debit Interest } \
\text { Expense }
\end{array} & \begin{array}{c}
\text { Debit Notes } \
\text { Payable }
\end{array} & \text { Credit Cash } & \begin{array}{c}
\text { Ending } \
\text { Balance }
\end{array} \
\hline 12 / 31 / 09 & & & & & \
\hline 12 / 31 / 10 & & & & & \
\hline 12 / 31 / 11 & & & & &\
\hline
\end{array}$

Quizplus · Accepted Answer

The Answer of A company purchased two new trucks for a total of $250,000 on January 1,2009.The company paid $40,000 cash and gave a $210,000,3-year,8% note for the remaining balance.The note is to be paid in three annual end-of-year payments beginning December 31,2009.Assume the annual installment payments are to consist of equal amounts of principal plus accrued interest.Prepare a note amortization table using the format below.
 $\begin{array}{|l|c|c|c|c|c|}
\hline\begin{array}{c}
\text { Period } \
\text { Ending Date }
\end{array} & \begin{array}{c}
\text { Beginning } \
\text { Balance }
\end{array} & \begin{array}{c}
\text { Debit Interest } \
\text { Expense }
\end{array} & \begin{array}{c}
\text { Debit Notes } \
\text { Payable }
\end{array} & \text { Credit Cash } & \begin{array}{c}
\text { Ending } \
\text { Balance }
\end{array} \
\hline 12 / 31 / 09 & & & & & \
\hline 12 / 31 / 10 & & & & & \
\hline 12 / 31 / 11 & & & & &\
\hline
\end{array}$

A Company Purchased Two New Trucks for a Total of $250,000