On January 1, 2017, Sullivan Cabinetry Company purchases $300,000 of property by paying $50,000 in cash and signing a 10-year mortgage note at 13% for the balance
Sullivan will make yearly payments of $46,072. Prepare the amortization schedule for the first five payments. (Round your answers to the nearest dollar.)
What will be an ideal response
Beginning Balance Principal Payment Interest Expense Total Payment Ending Balance
01/01/2017 $250,000
01/01/2018 $250,000 $13,572 $32,500 $46,072 236,428
01/01/2019 236,428 15,336 30,736 46,072 221,092
01/01/2020 221,092 17,330 28,742 46,072 203,762
01/01/2021 203,762 19,583 26,489 46,072 184,179
01/01/2022 184,179 22,129 23,943 46,072 162,050
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