On February 1, 2015, Willmar Corporation borrowed $100,000 from its bank by signing a 12 percent, 15-year note payable. The note calls for 180 monthly payments of $1,200. Each payment includes an interest and a principal component.
a. Compute the interest expense in February.
Interest expense
b. Compute the portion of Willmar's March 31, 2015, $1,200 payment that will be applied to the principal of the note.
Principal
c. Compute the carrying value of the note on April 30, 2015. (Do not round intermediate calculations and round the final answer to the nearest whole dollar.)
Carrying value