On November 1, 2013, Norwood borrows $410,000 cash from a bank by signing a five-year installment note bearing 9% interest. The note requires equal total payments each year on October 31.
Complete an amortization table for this installment note. (Round your intermediate calculations to the nearest dollar amount.) [Can you tell me how to solve for the numbers]
Table includes:
Period ending Date Debit Interest expense +Debit Notes Payable =Credit Cash Ending Balance
Prepare the journal entries in which Norwood records the following:
(a) Accrued interest as of December 31, 2013 (the end of its annual reporting period).
(b) The first annual payment on the note.:Record the first installment payment on October 31, 2014. Assume no reversing entries were prepared.