Prepare a note amortization schedule for the first year

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Reference no: EM131287864

(Part Level Submission) Indigo Inc. developed a new sales gimmick to help sell its inventory of new automobiles. Because many new car buyers need financing, Indigo offered a low downpayment and low car payments for the first year after purchase. It believes that this promotion will bring in some new buyers. On January 1, 2017, a customer purchased a new $33,400 automobile, making a downpayment of $680. The customer signed a note indicating that the annual rate of interest would be 8% and that quarterly payments would be made over 3 years. For the first year, Indigo required a $409 quarterly payment to be made on April 1, July 1, October 1, and January 1, 2018. After this one-year period, the customer was required to make regular quarterly payments that would pay off the loan as of January 1, 2020. (a) Prepare a note amortization schedule for the first year. (Round answers to 0 decimal places, e.g. 38,548.)

(a) Prepare a note amortization schedule for the first year.

(Round answers to 0 decimal places, e.g. 38,548.)

Date Cash Paid Interest Expense Discount Amortized Carrying Amount of Note

1/1/17 $

4/1/17

7/1/17

10/1/17

1/1/18

Reference no: EM131287864

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