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Question

On November 1, 2019, Norwood borrows $410,000 cash from a bank by signing a five-year installment note bearing 9%

interest. The note requires equal payments of $105,407 each year on October 31.

 

Required:

1. Complete an amortization table for this installment note.

2. Prepare the journal entries in which Norwood records the following:

(a) Accrued interest as of December 31, 2019 (the end of its annual reporting period).

(b) The first annual payment on the note.

 

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