Intermediate Accounting I



Intermediate Accounting I

Dr. Edward Nathan

Handout Problem for Chapter 11 – Due with second exam

Boyette Company borrows $60,000 at 12% for 30 years. Their monthly payment is $617.17 for 360 months (30 years).

1) Assuming the bank uses the effective interest method for amortization prepare a spreadsheet amortization schedule using either Excel or Lotus covering the 30 years (360 months at 1% per month).

2) Assuming the bank uses the Rule of 78’s prepare a spreadsheet amortization schedule using either Excel or Lotus covering the 30 years (360 months at 1% per month).

Hint: We worked some of this problem in class so use the class answers as check figures to make sure your amortization schedules are accurate.

................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download