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The corporation purchased a new van and had the company logo painted on it. A Royal Bank of Canada Term Plan Loan financed $25,000 of the total $35,000 before tax purchase price at an interest rate of 9.25%. The company has adopted the policy of declining balance method over the useful life of the van including the effect of salvage value, if any, with one month of amortization to be taken in the month of acquisition. The van is expected to last eight years and sell at that time for $5,000. All other assets are expected to last 10 years based on straight-line method, with no residual value. Items over $300 are considered to be capital assets. Incorporation costs are amortized over three years beginning in January 2, 2021.

M MOUNTAIN CARPETS LTD TERMPUAN LOAN SCHEDULE 09 FEBRUARY 200X To 09 FEBRUARY 2007 Principal Payment Interest Payment Total Payment Principal Balance 432.39 Payment due date Proceeds of loan, 9 January 200X 9 February 200X 9 March 2008 9 April 200X 9 May 200x 9 June 200X 9 July 200X August 2008 9 September 2007 9 October 200X November 200X 9 December 200X 9 January 2007 9 February 2009 43908 142.47 445. 449.31 452.78 456 27 489.78 46333 466.90 470.50 474.13 192.71 189 18 18602 182.63 199.22 175.79 172.32 168.83 165.32 161.77 158.20 154.60 150.00 625.10 625.10 625.10 625.10 635 10 625.10 625.10 625.10 625.10 625.10 625.10 625.10 625.10 25,000.00 24.567.61 24.131.89 23.692.81 23.250 34 22.04.46 22.355.15 21.902.32 21.446.10 20,986 32 20.522.99 20.056.09 19,585.59 19,111.46 Payment due date Principal Payment Interest Payment Total Payment Principal Balance 432.39 435.72 439.08 442.47 445 88 Proceeds of loan, 9 January 200X 9 February 200X 9 March 200x 9 April 2007 9 May 200x 9 June 200x 9 July 200x 9 August 200X 9 September 200x 9 October 200X 9 November 200X 9 December 200X 9 January 2007 9 February 2007 452.78 456.27 459.78 46333 466.90 470.50 474.13 192.71 189.38 186.02 182.63 179.22 175.79 172.32 168.83 165.32 161.77 158.20 154.60 150.97 625.10 625.10 625.10 625.10 625.10 625.10 625.10 625.10 625.10 625.10 625.10 625.10 625.10 25.000.00 24.567.61 24,131.89 23.692.81 23.250.34 22.804.46 22,355.15 21.902.37 21.446.10 20.986.32 20,522.99 20.056.09 19,585.59 19.111.46