Question

Ann Company borrowed $240,000 to buy an equipment on January 1, 2019, and signed a 7% instalment note requiring annual equal payments, including principal and interest at the end of every year for 15 years. Rounded to the nearest dollar, determine the balance in the Instalment Note Payable account after making the first annual payment.

Answer 1

Answer:

$2,000

Explanation:

Payment include repayment of Capital Amount and Payment of Interest expense

Therefore the balance in the Instalment Note Payable account after making the first annual payment is