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

question 124

Essay

A company purchased two new trucks for a total of $250,000 on January 1,2009.The company paid $40,000 cash and gave a $210,000,3-year,8% note for the remaining balance.The note is to be paid in three annual end-of-year payments beginning December 31,2009.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.
$\begin{array}{|l|c|c|c|c|c|}\hline\begin{array}{c}\text { Period } \\\text { Ending Date }\end{array} & \begin{array}{c}\text { Beginning } \\\text { Balance }\end{array} & \begin{array}{c}\text { Debit Interest } \\\text { Expense }\end{array} & \begin{array}{c}\text { Debit Notes } \\\text { Payable }\end{array} & \text { Credit Cash } & \begin{array}{c}\text { Ending } \\\text { Balance }\end{array} \\\hline 12 / 31 / 09 & & & & & \\\hline 12 / 31 / 10 & & & & & \\\hline 12 / 31 / 11 & & & & &\\\hline\end{array}$

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Definitions:

Fossa

A depression or hollow, usually in a bone.

Tuberosity

A large rounded projection on a bone, often serving as a site for muscle or ligament attachment.

Clavicle

A long bone that serves as a strut between the shoulder blade and the sternum or breastbone, commonly known as the collarbone.