The following instalment payment schedule is for an instalment note payable: 

Instructions
a. Is this a fixed principal or blended payment schedule?
b. What is the interest rate on the note?
c. Prepare the journal entry to record the first instalment payment.
d. What are the non-current and current portions of the note at December 31, 2025?

Transcribed Image Text:

Interest Period Cash Payment Interest Expense Jan. 1, 2024 Jan. 1, 2025 Jan. 1, 2026 Jan. 1, 2027 Jan. 1, 2028 Jan. 1, 2029 $23,097 23,097 23,097 23,097 23,097 $5,000 4,095 3,145 2,147 1,098 Reduction of Principal $18,097 19,002 19,952 20,950 21,999 Principal Balance $100,000 81,903 62,901 42,949 21,999 0