Account for notes payale with periodic payments of principal and interest.

p7.xls

Sheet1

Problem 7-63A					Name
					Section
A	B	C	D	E	F	G	H
5	Part 1.	Ultra Power, Inc
6	Machine a.
7	Principal						Amount
8	Term in years						Amount
9	Interest rate						Amount
10	Payment						Amount
11			Annual payment date, February 28	Annual payment	Interest expense	Reduction in principal	Principal balance
12			Beginning bal.				Amount
13			2012	Amount	$ - 0	$0	-
14			2013	Amount	- 0	- 0	- 0
15			2014	Amount	- 0	- 0	- 0
16			2015	Amount	- 0	- 0	- 0
17	Machine b.
18	Principal						Amount
19	Term in years						Amount
20	Interest rate						Amount
21	Payment						Amount
22			Annual payment date, September 30	Annual payment	Interest expense	Reduction in principal	Principal balance
23			Beginning bal.				Amount
24			2012	Amount	$ - 0	$0	-
25			2013	Amount	- 0	- 0	- 0
26			2014	Amount	- 0	- 0	- 0
27			2015	Amount	- 0	- 0	- 0
28	Part 2.
29	Machine a.						Formula 1
30	Machine b.						Formula 2
31	Total interest shown on income statement						$ - 0
32	Part 3.
33	Machine a.						Formula 3
34	Machine b.						Formula 4
35	Total interest payable shown on balance sheet						$ - 0
36
	End of Problem

&LReimers, Financial Accounting 3e