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On August 1, 2019, Jill borrowed $90,000 at 5% from Jack and agreed to make annual payments of $20,788 for 5 years.
- Complete the amortization table below. Round all calculations to the nearest dollar.
- Prepare all necessary journal entries to record the receipt of funds, adjusting entries at year end and the first payment.
| |
| | Beginning Principal Balance | Payment | Interest | Principal Reduction | Ending Principal Balance |
| | | | | | |
| 20X1 | 90,000 | 20,788 | 4,500 | 16,288 | 73,712 |
| 20X2 | | | | | 56,610 |
| 20X3 | | | | | 38,652 |
| 20X4 | | | | | 19,797 |
| 20X5 | 19,797 | 20,788 | 990 | 19,798 | (1) |
August 1, 2019: Record receipt of Loan Funds
December 31, 2019: Record year end interest accrual
July 31, 2020: Record payment
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