Hardtack Industries borrowed $336,000 from its bank in return for an installment note with 8% interest.Hardtack will make 6 annual payments of $72,682.At the end of the first period,Hardtack will report a note payable on its balance sheet of:
A)$336,000.
B)$263,318.
C)$290,198.
D)$240,732.

Question

Quizplus · Accepted Answer

Interest expense: $336,000 × 8% = $26,880;Note payable balance: $336,000 − ($72,682 − $26,880)= $290,198.

Hardtack Industries Borrowed $336,000 from Its Bank in Return for an Installment