Amortization Schedule
Not what you're looking for?
ON 12/31/05, XYZ INC. PURCHASED A NEW PIECE OF EQUIPMENT FOR $1,200,000. A LOAN IN THE TOTAL AMOUNT WAS TAKEN OUT TO PURCHASE THE EQUIPMENT. THE TERMS OF THE LOAN ARE AS FOLLOWS:
INTEREST RATE: 8%
# OF MONTHLY PYMTS: 48
MONTHLY PAYMENT: 29,101.50
PYMT DUE ON: FIRST OF EACH MONTH
BEGINNING 1/1/06
I NEED HELP TO PREPARE AN AMORTIZATION SCHEDULE FOR THE 48 MONTH LOAN IN AN EXCEL SPREADSHEET, ASSUMING THE EQUIPMENT HAS A FOUR YEAR USEFUL LIFE WITH A SALVAGE VALUE OF $200,000, DETERMINE THE NET VALUE OF THE EQUIPMENT THAT WILL BE REPORTED ON THE BOOKS AT THE END OF EACH YEAR USING STRAIGHT LINE DEPRECIATION.
Purchase this Solution
Solution Summary
The solution explains how to prepare an amortization schedule using excel.
Solution Preview
Please see the attached file. The closing book value would be the net value of the equipment in the books
QUESTION FROM STUDENT:
I don't understand how there is no interest paid the first month. The formula used to calculate the interest, would that be the same formula used all the time, just replacing the percentage with ...
Purchase this Solution
Free BrainMass Quizzes
Lean your Process
This quiz will help you understand the basic concepts of Lean.
Income Streams
In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.
Transformational Leadership
This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.
Learning Lean
This quiz will help you understand the basic concepts of Lean.
Operations Management
This quiz tests a student's knowledge about Operations Management