04 PSA9.6 Prepare a mortgage schedule and journal entries for loans payable by instalment. At the beginning of the month, Cherry Ltd had the following three loans outstanding: Balance owing at beginning of month Annual Monthly interest Mortgagee rate repayment Eastpac Bank State Bank NZA Bank $400000 $250000 S600000 18% $10000 12% 15% S12000 $40 000 Required (a) Prepare journal entries to record the interest payments on each loan for the month. (b) What was Cherry Ltd's interest expense for mortgages for the current month? (c) Assuming no new loans, wl the interest expense for the next month be greater than, less than or the same as the current month's interest expense? Explain PSB9.3 Prepare journal entries to record interest payments, and redemption of unsecured notes. LO3 The following extract is taken from Spring Hill Ltd's statement of financial position at 31 December 2018. Current liabilities Interest payable on unsecured notes (for 6 months from 1 July to 31 December) Non-current liabilities Unsecured notes payable, 12% due 1 January 2022 360000 6000000 Interest is payable half-yearly on 30 June. January and 1 July. Assume no interest is accrued on Required Round all calculations to the nearest dollar.) (a) Journalise the payment of interest on 1 January 2019. (b) Prepare the entry to pay the interest due on 1 July 2019. (c) Assume on 1 July 2020, after paying interest, that Spring Hill Ltd redeems half of the unsecured notes at 103. Record the redemption of the notes. (d) Explain the advantage of debt financing over issuing shares