An installment note payable for a principal amount of $94,000 at 6% interest requires Lawson Company to repay the principal and interest in equal annual payments of $22,315 beginning December 31, 2014, for each of the next five years. After the final payment, the carrying amount on the note will be
A) $ 1,263
B) $21,053
C) $22,315
D) $ 0

Question

Quizplus · Accepted Answer

The carrying amount on the note will be zero after the final payment as it would have been fully paid off.

An Installment Note Payable for a Principal Amount of $94,000