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All question is in picture. Thanks!!!!!!!!!! Example - Installment note (negotiated first day of fiscal year) Bret Enterprises borrows $12,000 on January 1, 2015, and

All question is in picture. Thanks!!!!!!!!!!

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Example - Installment note (negotiated first day of fiscal year) Bret Enterprises borrows $12,000 on January 1, 2015, and signs a 6% promissory note to be repaid in full by December 31, 2020. The note requires end-of-year annual installments comprising blended interest and principal components; interest is calculated annually. Required: 1. Use an online amortization calculator to determine the amount of each annual installment. Produce an amortization schedule showing for each year of the note the beginning principal balance, interest, principal repayment, and ending principal balance. 2. Prepare journal entries for 2015 and 2016, assuming Bret Enterprises prepares quarterly financial statements. 3. Of the balance owed at December 31, 2015, what amount is current versus long-term? Beginning Interest Repaid Principal Ending Year Note Payable Expense (6%) on Note Payable Note Payable 2015 12,000 720 1,720 10,280 2016 10,280 616 1, 824 8, 456 2017 8,456 507 1, 933 6,523 2018 6, 523 391 2, 049 4,474 2019 4,474 268 2, 172 2, 302 2020 2, 302 138 2, 302 (0) Total 2, 642 12,000

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