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Annie Company borrowed $6,000 from its neighborhood bank for business expansion on December 31, Year 1. The bank charges 10% interest requiring semi-annual payments of
Annie Company borrowed $6,000 from its neighborhood bank for business expansion on December 31, Year 1. The bank charges 10% interest requiring semi-annual payments of equal size over a five-year period amortizing the loan. The first loan payment is to be made six months after taking out the loan. If using tables, do not round your factors. Leave the factors showing five digits to the right of the decimal. Show your final answer rounded to whole dollars, without '$' signs and without commas. #Q1. Show the size of each of the equal payments made to amortize the loan. The other requirements based on this fact pattern are shown below. #Q2. How much Interest Expense would be recognized in the six months ended June 30, Year 1? #Q3. What would the carrying value of the note be in the balance sheet on December 31, Year 1? #Q4. How much Interest Expense would be in the income statement for the year ended December 31, Year 3
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