Schaefer Company financed a major expansion of its production capacity by borrowing money and signing an installment note at the bank. The four-year, 14\%, \(\$ 200,000\) note is dated June 30, 1990, and requires equal semiannual payments beginning December 31, 1990 .

\section*{Required}

1. Calculate the amount of the installment payments. (Use Table 10-2 on page 411.)

2. Prepare a table with column headings like the table in Illustration 11-1. Complete the table for the Schaefer Company note.

3. Prepare general journal entries to record the first and the last payments on the note.

4. Assume that the note does not require equal payments. Instead, assume the note requires payments of accrued interest plus equal amounts of principal. Prepare general journal entries to record the first and the last payments on the note.