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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.
| Period Ending Date | Beginning Balance | Debit Interest Expense | Debit Notes Payable | Credit Cash | Ending Balance |
| 12/31/13 | |||||
| 12/31/14 | |||||
| 12/31/15 |
Answer
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