Question

An installment note payable for a principal amount of $94,000 at 6% interest requires Lawson Company to repay the principal and interest in equal annual payments of $22,315 beginning December 31, of the first year, for each of the next five years. After the final payment, the carrying amount on the note will be

Answer 1

Answer:

$0

Explanation:

Since the note requires Lawson Company to repay the principal and interest in equal annual payments of $22,315, both the principal and interest must have been fully paid after the final payment.

Therefore, the carrying amount on the note will be $0 after the final payment.