1. Notes Payable:

On 1/1/2020, Jonas Corp. also issued a 12%, 2-year note for $80,000, with annual payments of $47,336. Tip: if you open this document in Word, you can use the Excel table to auto calculate amounts with formulas

1. Prepare an amortization schedule

Year Beg. Balance Payment Interest Principal End Balance

12/31/20

12/31/21

2. What is the total amount of interest paid by Jonas Corp over the life of the note?

3. Using only the information in this problem, what is the amount of long-term liabilities reported on Jonas Corp.s 12/31/2020 balance sheet?

4. What is the entry made by Jonas Corp. on 12/31/2021 to record payment on the note?

5. Jonas Corp. is looking for a flexible debt agreement that allows them to borrow money and repay it at will. What type of debt would best serves their needs?