Jones Farm purchased a used New Holland tractor from Webb's Machinery Ltd on May 1, 2017 for $90,000. The tractor was financed through CNH Finance. The agreement called for a $45,000 down payment, with the balance to be financed with semi-annual payments over 4 years. There was a charge of $30 for writing up the finance contract. Jones Farm wrote a cheque for $45,030 which included the down payment and the financing fee of $30. (10 marks) The following loan amortization schedule was provided by CNH Finance. CNH Finance Principal Amount: $45,000.00 Interest Rate: 5.00% Payment Date 1-May-2017 1-Nov-2017 1-May-2018 1-Nov-2018 1-May-2019 1-Nov-2019 1-May-2020 1-Nov-2020 1-May-2021 Totals 110 150 155 6,276.03 6,276.03 6,276.03 6,276.03 6,276.03 6,276.03 6,276.03 6,276.03 50,208.24 215 250 260 310 410 525 570 Interest The Chart of Accounts for Jones Farm is provided below: Jones Farm Chart of Accounts 1,125.00 996.22 864.23 728.93 590.26 448.11 302.41 153.07 5,208.24 Bank Chequing Machinery Accumulated Depreciation, Machinery Term (years): Payments/year: Principal Interest Payable Current Portion of Long-Term Debt CNH Finance Loan G. Jones, Capital Crop Sales Depreciation Interest 5,151.03 5,279.81 5,411.80 5,547.10 5,685.77 5,827.92 5,973.62 6,122.96 45,000.00 4 2 Balance 45,000.00 39,848.97 34,569.16 29,157.36 23,610.27 17,924.49 12,096.58 6,122.96 0.00 (b) Kequired: (a) Journalize the purchase of the tractor on May 1, 2017 and the related financing. General Journal Account Title and Explanation Date Journalize the November 1, 2017 loan payment. General Journal Account Title and Explanation Date Post. Ref. Post. Ref. Debit Debit Page 1 Credit Page 1 Credit (c) Accrual financial statements are being prepared for the December 31, 2017 year end. Show the calculation for the interest payable at December 31, 2017: