Problem: Waldman.'s accounting staff prepared the following amortization table related to the note:
YR Bal at Beg of Yr Int Exp EOY Pymnt Bal at EOY
1 $2,577.10 $206.17 1,000.00 ?
2 1,783.27 142.66 1,000.00 ?
3 925.93 74.07 1,000.00 ?
1) What was the purchase price of the machinery?
2) What was the Int Rate called fpr on the note?
3) By what amount was the prinicpal balance of the note reduced during the yr?
4) What amount will be reported on Waldman's yr 2 income statement regarding this note? What will it be labeled?
5) What amount will be rptd on Waldman's yr 3 statement of Cash Flow regarding this note?
6) What amount will be rptd on Waldman's yr 1 Balance Sheet regardingthis note? In what section and under what title will it be reported?