On December 31, 2020 the Old Dutch potato chip company took out a $500,000 loan for some repairs to their production facility. The terms of the loan were as follows: Loan Amount: $500,000 Interest rate: Prime plus 3% Terms: 20 years or monthly payments of $6,500, depending on choice of repayment method Repayment method: Blended . Required: The company is interested in some of the highlights they will see with the loan during 2021. Specifically they would like to know: 1. What is the interest expense for the month of May, 2021. The current bank prime rate is 4.5% (assume all payments are made at the end of the month) 2. What would be the journal entry to record the July 2021 payment (prepare the journal entry in good form) 3. What would be the ending balance of the loan at the end of 2021? 4. When the company received the loan, December 31, 2020, discuss how the presentation would appear on the December 31, 2020 Balance Sheet