A company purchased two new trucks for a total of $250,000 on January 1,2013.The company paid $40,000 cash and gave a $210,000,three-year,8% note for the remaining balance.The note is to be paid in three annual end-of-year payments beginning December 31,2013.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.
$$\begin{array} { | l | c | c | c | c | c | }
\hline \begin{array} { c }
\text { Period } \
\text { Ending Date }
\end{array} & \begin{array} { c }
\text { Beginning } \
\text { Balance }
\end{array} & \begin{array} { c }
\text { Debit Interest } \
\text { Expense }
\end{array} & \begin{array} { c }
\text { Debit Notes } \
\text { Payable }
\end{array} & \text { Credit Cash } & \begin{array} { c }
\text { Ending } \
\text { Balance }
\end{array} \
\hline 12 / 31 / 13 & & & & & \
\hline 12 / 3 / 14 & & & & & \
\hline 12 / 31 / 15 & & & & & \
\hline
\end{array}$$

Question

A company purchased two new trucks for a total of $250,000 on January 1,2013.The company paid $40,000 cash and gave a $210,000,three-year,8% note for the remaining balance.The note is to be paid in three annual end-of-year payments beginning December 31,2013.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.
 $$\begin{array} { | l | c | c | c | c | c | } 
\hline \begin{array} { c } 
\text { Period } \
\text { Ending Date }
\end{array} & \begin{array} { c } 
\text { Beginning } \
\text { Balance }
\end{array} & \begin{array} { c } 
\text { Debit Interest } \
\text { Expense }
\end{array} & \begin{array} { c } 
\text { Debit Notes } \
\text { Payable }
\end{array} & \text { Credit Cash } & \begin{array} { c } 
\text { Ending } \
\text { Balance }
\end{array} \
\hline 12 / 31 / 13 & & & & & \
\hline 12 / 3 / 14 & & & & & \
\hline 12 / 31 / 15 & & & & & \
\hline
\end{array}$$

Quizplus · Accepted Answer

The Answer of A company purchased two new trucks for a total of $250,000 on January 1,2013.The company paid $40,000 cash and gave a $210,000,three-year,8% note for the remaining balance.The note is to be paid in three annual end-of-year payments beginning December 31,2013.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.
 $$\begin{array} { | l | c | c | c | c | c | } 
\hline \begin{array} { c } 
\text { Period } \
\text { Ending Date }
\end{array} & \begin{array} { c } 
\text { Beginning } \
\text { Balance }
\end{array} & \begin{array} { c } 
\text { Debit Interest } \
\text { Expense }
\end{array} & \begin{array} { c } 
\text { Debit Notes } \
\text { Payable }
\end{array} & \text { Credit Cash } & \begin{array} { c } 
\text { Ending } \
\text { Balance }
\end{array} \
\hline 12 / 31 / 13 & & & & & \
\hline 12 / 3 / 14 & & & & & \
\hline 12 / 31 / 15 & & & & & \
\hline
\end{array}$$

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