责任本质.pptVIP

Installment Notes Payable Long-term notes that call for a series of installment payments. Each payment covers interest for the period AND a portion of the principal. With each payment, the interest portion gets smaller and the principal portion gets larger. Allocating Installment Payments Between Interest and Principal Identify the unpaid principal balance. Unpaid Principal ?Interest rate = Interest expense. Installment payment - Interest expense = Reduction in unpaid principal balance. Compute new unpaid principal balance. Allocating Installment Payments Between Interest and Principal On Janu