Hello, these are the answers we got to the previous questions. Can someone answer the following? Thank you

5. Assume that the next quarterly installment on the industrial development bond is due on March 31, Year 3. Prepare a journal entry to record the installment payment and any interest. Assume that the effective interest rate for the bond is 14% per year.

6. The company has a mortgage note payable for $1,794,000 that comes due on April 30, Year 3. Suppose that this note is paid by the signing of a new 14% note for the amount due. Prepare the April 30, Year 3, journal entry to record this refinancing of the old note.

7. Instead of refinancing the note, suppose the company pays the principal along with any remaining interest on April 30, Year 3. Prepare a journal entry to record this cash payment

Interpreting long-term debt disclosures (LO 12-1, LO 12-7) Potter Corporation (a fictional company) operates a chain of discount retail stores. The following is information taken from a recent Potter annual report. In connection with these mortgages, the company is required to maintain a minimum net worth and comply with other financial covenants, including a restriction limiting loans to officers to less than $2,000,000. On December 31, Year 2, the company is following these covenants. The $1,794,000 note payable to the bank due on April 30, Year 3, is classified as a current liability on December 31, Year 2. The aggregate maturities of mortgages are as follows (\$ in thousands): Consolidated Balance Sheet Total current liabilities $21,080$22,884 Consolidated Statement of Cash Flows ( $ in thousands) Year 2 Year 1 Cash flows from financing activities: Net increase (decrease) in notes payable $0 ($3,500) Principal payments on mortgages 1,2981,194 Principal payments under capital lease obligation 214 0 Proceeds from common stock offering 0 0 Proceeds from exercise of common stock options 255 145 1. What was the current portion of Potter's mortgage payable at the end of Year 1 ? 2. How much did Potter pay in cash to reduce its mortgage payable during Year 2? 3. Explain the difference between your answer to requirement 1 and your answer to requirement 2 . 4. What are the components of the current portion of the mortgage payable as of the end of Year 2 ? 5. Assume that the next quarterly installment on the industrial development bond is due on March 31 , Year 3. Prepare a journal entry to record the installment payment and any interest. Assume that the effective interest rate for the bond is 14% per year. 6. The company has a mortgage note payable for $1,794,000 that comes due on April 30, Year 3. Suppose that this note is paid by the signing of a new 14% note for the amount due. Prepare the April 30 , Year 3 , journal entry to record this refinancing of the old note. 7. Instead of refinancing the note, suppose the company pays the principal along with any remaining interest on April 30, Year 3. Prepare a journal entry to record this cash payment. 1.) 1,402 - this is based on the consolidated balance sheet current installments on mortgages which amounts to 1,402 2.) 1,298 - this is based on the consolidated statement of cash flows from financing activities which indicates principal payments on mortgages 3.) The current installments on mortgages stated in the balance sheet at the end of year 1 amounting to 1,402 includes interest payables, while requirement number 2 only asks for the amount of principal payments only. The principal payment of mortgage is only 1,298 and the difference will be recorded as interest expense which is included in the operating activities of the company and not in the financing activities. Step 3/3 4.) The components of the current portion of the mortgage payable as of the end of year 2 includes principal payments of mortgage, interest payable on mortgage and the current portion of note payable to bank