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For an answer that requires a dollar amount as the answer, do NOT use a "$", commas or decimals

Accounting Dec 01, 2020

For an answer that requires a dollar amount as the answer, do NOT use a "$", commas or decimals. So, if you get an answer of "$1,200.00", please input your answer as "1200". The fact pattern is the same for all questions. A company purchased a vehicle on January 1, 2019. The company paid $10,000 at the purchase date and financed the balance of $35,000 with an 8% Note Payable, which requires semi-annual payments on June 30 and December 31 of each year for five years (the last payment will be on December 31, 2023). Each payment is $4,315. What is the balance in the Notes Payable T-account, AFTER the December 31, 2019, payment is made? Please round DOWN to the nearest whole dollar. So, if your answer is 20,123.4C you should input "20123" and NOT "20124"

Expert Solution

Interest expense for first payment 1400 =35000*8%*6/12
Note payable balance reduction 2915 =4315-1400
Interest expense for second payment 1283.40 =(35000-2915)*8%*6/12
Note payable balance reduction 3031.60 =4315-1283.40
     
Balance in Note Payable T-account 29053 =35000-2915-3031.60
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