Answer:
Belden, Inc.
Amortization Schedule
Period PV PMT Interest Deduction Net Liability
2017 $50,000.00 $11,000.00 $6,000.00 $5,000.00 $45,000.00
2018 $45,000.00 $10,400.00 $5,400.00 $5,000.00 $40,000.00
2019 $40,000.00 $9,800.00 $4,800.00 $5,000.00 $35,000.00
Explanation:
a) Data and Calculations:
Long-terms payable = $50,000
Period of note = 10 years
First payment = $11,000 ($5,000 principal + $6,000 interest)
Interest rate = 12%
Long-term payable after January 1, 2017 = $45,000 ($50,000 - $5,000)
12% Interest on payable balance of $45,000 = $5,400
Second payment = $10,400 ($5,000 principal + $5,400 interest)
Long-term payable after January 1, 2018 = $40,000 ($45,000 - $5,000)
12% Interest on payable balance of $40,000 = $4,800
Third payment = $9,800 ($5,000 principal + $4,800 interest)
Long-term payable after January 1, 2019 = $35,000 ($40,000 - $5,000)
