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Need help solving part d for this question plz :) A local company has just approached a venture capitalist for financing to develop a ski
Need help solving part d for this question plz :)
A local company has just approached a venture capitalist for financing to develop a ski hill. On April 1, 2017, the venture capitalist lent the company $1,080,000 at an interest rate of 5%. The loan is repayable over four years in fixed principal payments. The first payment is due March 31, 2018. The ski hill operator's year end will be December 31. (a) Your answer is correct. Record the issue of the note payable on April 1, 2017. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Date Account Titles and Explanation Debit Credit Apr. 1 Cash 1,080,000 Notes Payable 1,080,000 SHOW LIST OF ACCOUNTS SHOW ANSWER LINK TO TEXT LINK TO TEXT Attempts: 2 of 3 used v (b) Your answer is correct. Calculate the amount of the fixed principal payment. Fixed principal payment 270,000 Your answer is partially correct. Try again. Prepare an instalment payment schedule. Period Cash Payment Interest Expense Principal Reduction Balance Apr 1, 2017 1,080,0001 Mar. 31, 2018 324,000 54,000 270,000 810,000 > Mar. 31, 2019 310,500 40,500 270,000 540,000 Mar. 31, 2020 297,000 27,000 270,000 270,000 > Mar. 31, 2021 283,500 13,500 270,000 Total 1,215,000 135,000 1,080,000 (d) Record the accrual of interest on December 31, 2017, and the instalment payment on March 31, 2018. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31, 2017 Mar. 31, 2018Step by Step Solution
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