Cullumber Inc. developed a new sales gimmick to help sellits inventory of new automobiles. Because many new car buyers needfinancing, Cullumber offered a low downpayment and lowcar payments for the first year after purchase. It believes thatthis promotion will bring in some new buyers.On January 1, 2020, a customer purchased a new$36,200 automobile, making a downpayment of $1,240. Thecustomer signed a note indicating that the annual rate of interestwould be 12% and that quarterly payments would be made over 3years. For the first year, Cullumber required a$437 quarterly payment to be made on April 1, July 1, October1, and January 1, 2021. After this one-year period, the customerwas required to make regular quarterly payments that would pay offthe loan as of January 1, 2023.
Cullumber Inc Developed A New Sales Gimmick To Help Sell Its Inventory Of New Automobiles Because Many New Car Buyers 1 (84.26 KiB) Viewed 10 times
Part 1 Prepare a note amortization schedule for the first year. (Round answers to 0 decimal places, e.g. 38,548.) Date 1/1/20 4/1/20 7/1/20 10/1/20 1/1/21 Cash Paid $ tA [I IIIII Interest Expense LA Discount Amortized Carrying Amount of Note $ |||| IIIII
Part 4 Prepare a note amortization schedule for these new payments for the next 2 years. (Round answers to 0 decimal places, e.g. 38,548.) Date 1/1/21 4/1/21 7/1/21 10/1/21 1/1/22 4/1/22 7/1/22 10/1/22 1/1/23 $ Cash Paid $ Interest Expense $ Discount Amortized $ Carrying Amount of Note
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