Question

Exercise 10-24 (Part Level Submission) Crane Company receives $385,000 when it issues a $385,000, 8%, mortgage note payable to finance the construction of a building at December 31, 2017. The terms provide for annual installment payments of $44,979 on December 31. Collapse question part (a) Prepare an amortization schedule of a mortgage note for two years. (Round answers to 0 decimal places, e.g. 5,275.) Annual Interest Period Cash Payment Interest Expense Reduction of Principal Principal Balance Issue date $enter a dollar amount rounded to 0 decimal places $enter a dollar amount rounded to 0 decimal places $enter a dollar amount rounded to 0 decimal places $enter a dollar amount rounded to 0 decimal places 12/31/18 enter a dollar amount rounded to 0 decimal places enter a dollar amount rounded to 0 decimal places enter a dollar amount rounded to 0 decimal places enter a dollar amount rounded to 0 decimal places 12/31/19 enter a dollar amount rounded to 0 decimal places enter a dollar amount rounded to 0 decimal places enter a dollar amount rounded to 0 decimal places enter a dollar amount rounded to 0 decimal places

Answer 1

Annual Interest Period	Cash Payment	Interest Expense	Reduction of Principal Principal	Balance
Issue date				385000
12/31/18	44979	30800	14179	370821
12/31/19	44979	29666	15313	355508
Workings:
Interest Expense:
12/31/18	30800	=385000*8%
12/31/19	29666	=370821*8%