Reference no: EM131071392

On November 1, 2015, Norwood borrows $450,000 cash from a bank by signing a five-year installment note bearing 8% interest. The note requires equal total payments each year on October 31. (Table B.1, Table B.2, Table B.3, and Table B.4) (Use appropriate factor(s) from the tables provided.) Required: 1. Complete the below table to calculate the total amount of each installment payment. Initial Cash Proceeds PV Factor Amount of annual payment $450,000 ÷ = Complete an amortization table for this installment note. (Round your intermediate calculations to the nearest dollar amount.) Period Ending Date Beginning Balance Debit Interest Expense + Debit Notes Payable = Credit Cash Ending Balance 10/31/2016 $450,000 $36,000 10/31/2017 10/31/2018 10/31/2019 10/31/2020 Total Prepare the journal entries in which Norwood records the following: (a) Accrued interest as of December 31, 2015 (the end of its annual reporting period). Date General Journal Debit Credit Dec 31, 2015 Interest expense Interest payable The first annual payment on the note. Date General Journal Debit Credit Oct 31, 2016 Interest expense Interest payable Notes payable Cash