On February 1, Willmar Corporation borrowed $100,000 from itsbank by signing a 12 percent, 15-year note payable. The note callsfor 180 monthly payments of $1,310. Each payment includes aninterest and a principal component.
a. Compute the interest expense inFebruary.
b. Compute the portion of Willmar’s March31 payment that will be applied to the principal of thenote. (Round your intermediate calculations and finalanswer to the nearest dollar amount.)
c. Compute the carrying value of the noteon April 30. (Round your intermediate calculations andfinal answer to the nearest dollar amount.)
- Exercise 23 6 Algo Budgeting For Interest Expense Lo23 4 Lo23 5 On February 1 Willmar Corporation Borrowed 100 00 1 (3.36 KiB) Viewed 10 times