Budgeted debt service costs
On April 1,Fisher Corporation borrowed $400,000 from its bank by signing a 9%,5-year note payable.The note calls for 60 monthly payments of $6,150,which includes both interest and principal components.
(a)Interest expense budgeted for April amounts to: $________
(b)The carrying value of the note to be reported in the company's budgeted balance sheet as of April 30 is: $________
(c)Interest expense budgeted for May amounts to (round to nearest whole dollar): $________
(d)The carrying value of the note to be reported in the company's budgeted balance sheet as of May 31 is (round to nearest whole dollar): $________

Question

Quizplus · Accepted Answer

The Answer of Budgeted debt service costs
On April 1,Fisher Corporation borrowed $400,000 from its bank by signing a 9%,5-year note payable.The note calls for 60 monthly payments of $6,150,which includes both interest and principal components.
(a)Interest expense budgeted for April amounts to: $________
(b)The carrying value of the note to be reported in the company's budgeted balance sheet as of April 30 is: $________
(c)Interest expense budgeted for May amounts to (round to nearest whole dollar): $________
(d)The carrying value of the note to be reported in the company's budgeted balance sheet as of May 31 is (round to nearest whole dollar): $________

Budgeted Debt Service Costs